Here’s Headwaters Capital’s Perspective on Abcam plc (ABCM) Acquisition
Headwaters Capital Management, an investment management company, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund declined -7.6% (-7.8% net) in the third quarter compared to a -4.7% return for the Russell Mid Cap Index. The YTD results stand at +14.2% (+13.5% net) compared to a +3.9% return for the index. The firm remains optimistic about the prospects of the companies in its portfolio. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Headwaters Capital Management highlighted stocks like Abcam plc (NASDAQ:ABCM) in the third quarter 2023 investor letter. Headquartered in Cambridge, the United Kingdom, Abcam plc (NASDAQ:ABCM) is a global life science company that focuses on identifying, developing, and distributing reagents and tools. On November 14, 2023, Abcam plc (NASDAQ:ABCM) stock closed at $23.23 per share. One-month return of Abcam plc (NASDAQ:ABCM) was 1.57%, and its shares gained 37.46% of their value over the last 52 weeks. Abcam plc (NASDAQ:ABCM) has a market capitalization of $5.346 billion.
Headwaters Capital Management made the following comment about Abcam plc (NASDAQ:ABCM) in its Q3 2023 investor letter:
"In lieu of any new portfolio additions this quarter, I wanted to provide an update on Danaher’s (“DHR”) proposed acquisition of Abcam plc (NASDAQ:ABCM), which Headwaters Capital continues to oppose. Hopefully most investors saw the initial letter to shareholders on 9/21/23 outlining why Headwaters Capital is opposed to the transaction. On October 18, 2023, Headwaters released a follow-up letter in response to Abcam’s Independent Directors’ Q&A about how they arrived at the recommendation to sell to Danaher at a $24 price. The full letter is attached at the end of this letter.
Since the October letter was released, both DHR and Thermo Fisher (“TMO”) have reported Q3 earnings. While these bellwether life science peers are dealing with COVID revenue declines, bioprocessing weakness and general declines in capital equipment spending that are negatively impacting their revenues and the broader life sciences tools industry, ABCM, on the other hand, has minimal exposure to any of this end market weakness. Instead, as noted by both DHR and TMO, the academic, government and life sciences end markets where ABCM is concentrated, continue to perform well…” (Click here to read the full text)
A close-up of a laboratory worker in a hazmat suit examining cultures and reagents to develop a pharmaceutical drug.
Abcam plc (NASDAQ:ABCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Abcam plc (NASDAQ:ABCM) at the end of second quarter which was 14 in the previous quarter.
We discussed Abcam plc (NASDAQ:ABCM) in another article and shared Baron Discovery Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
