Karuna Therapeutics (KRTX) Rose on Acquisition Announcement
Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter the strategy returned 17.6% net of fees compared to the S&P 500’s 11.7% return. The portfolio's outperformance can be attributed to a three-factor model, where interaction, selection, and allocation effects all played a significant role. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Patient Capital Management featured stocks such as Karuna Therapeutics, Inc. (NASDAQ:KRTX) in the fourth quarter 2023 investor letter. Headquartered in Boston, Massachusetts, Karuna Therapeutics, Inc. (NASDAQ:KRTX) is a clinical-stage biopharmaceutical company. On January 30, 2024, Karuna Therapeutics, Inc. (NASDAQ:KRTX) stock closed at $313.86 per share. One-month return of Karuna Therapeutics, Inc. (NASDAQ:KRTX) was -0.10%, and its shares gained 61.55% of their value over the last 52 weeks. Karuna Therapeutics, Inc. (NASDAQ:KRTX) has a market capitalization of $11.893 billion.
Patient Capital Management stated the following regarding Karuna Therapeutics, Inc. (NASDAQ:KRTX) in its fourth quarter 2023 investor letter:
"Karuna Therapeutics, Inc. (NASDAQ:KRTX) gained 87.2% in the fourth quarter following its announced acquisition by Bristol-Myers Squibb (BMY) in December. Bristol Myers Squibb agreed to purchase the company for $330 per share, a 53% premium from where the stock was trading. The acquisition is expected to close in June of 2024. The valuation was in-line with recent transaction in the space and was part of what we believed made Karuna an attractive investment given its material discount to these levels."
A scientist in the lab, researching the development of biopharmaceutical monoclonal antibody drugs.
Karuna Therapeutics, Inc. (NASDAQ:KRTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Karuna Therapeutics, Inc. (NASDAQ:KRTX) at the end of third quarter which was 42 in the previous quarter.
We discussed Karuna Therapeutics, Inc. (NASDAQ:KRTX) in another article and shared ClearBridge SMID Cap Growth Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
