This is the first of our series “Ignore Fundville at Your Own Peril“.
Look at this fundville table that we released in February 2010:
3. Top 20 Holdings (Value) of This Quarter
| No. | Security | Put/Call | Stock | Shares | Value(x$1000) | Activity(Shr) | % Port. |
|---|---|---|---|---|---|---|---|
| 1.) | LIFE TECHNOLOGIES CORPORATION | LIFE | 6,200,000 | $323,764 | Cut -4.62% | 8.46% | |
| 2.) | HOLOGIC, INC. | HOLX | 17,800,000 | $258,100 | Cut -3.78% | 6.74% | |
| 3.) | GILEAD SCIENCES, INC. | GILD | 5,500,000 | $237,985 | Added 150.00% | 6.22% | |
| 4.) | VALEANT PHARMACEUTICALS INTERNATIONAL | VRX | 7,000,000 | $222,530 | Cut -30.00% | 5.81% | |
| 5.) | COVIDIEN PLC | COV | 3,000,000 | $143,670 | Cut -28.57% | 3.75% | |
| 6.) | MAGELLAN HEALTH SERVICES, INC. | MGLN | 3,425,000 | $139,500 | Unchanged | 3.64% | |
| 7.) | MEDIVATION, INC. | PUT | MDVN | 3,500,000 | $131,775 | Added 250.00% | 3.44% |
| 8.) | ST. JUDE MEDICAL, INC. | STJ | 3,500,000 | $128,730 | Added 89.19% | 3.36% | |
| 9.) | BIOGEN IDEC INC | BIIB | 2,277,500 | $121,846 | Cut -48.24% | 3.18% | |
| 10.) | HILL-ROM HOLDINGS, INC. | HRC | 4,900,000 | $117,551 | Unchanged | 3.07% | |
| 11.) | DAVITA INC. | DVA | 1,775,000 | $104,263 | Added 255.00% | 2.72% | |
| 12.) | CVS CAREMARK CORPORATION | CVS | 2,850,000 | $91,799 | Added 128.00% | 2.40% | |
| 13.) | AMERISOURCEBERGEN CORP. | ABC | 3,500,000 | $91,245 | Added 159.26% | 2.38% | |
| 14.) | SERVICE CORP. INTERNATIONAL | SCI | 11,000,000 | $90,090 | Added 25.00% | 2.35% | |
| 15.) | ALIGN TECHNOLOGY, INC. | ALGN | 5,000,000 | $89,100 | Unchanged | 2.33% | |
| 16.) | BIOMARIN PHARMACEUTICAL INC. | BMRN | 4,700,000 | $88,407 | Cut -4.08% | 2.31% | |
| 17.) | BAXTER INTERNATIONAL INC. | BAX | 1,500,000 | $88,020 | New | 2.30% | |
| 18.) | PERKINELMER, INC. | PKI | 4,200,000 | $86,478 | Cut -2.33% | 2.26% | |
| 19.) | ILLUMINA, INC. | ILMN | 2,800,000 | $85,904 | New | 2.24% | |
| 20.) | NEKTAR THERAPEUTICS | NKTR | 9,100,000 | $84,812 | Added 0.55% | 2.22% |
The first observation is that somebody was shorting MDVN, “a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of Alzheimer’s disease” (Yahoo Finance), with extremely high conviction!
The hedge fund manager was the well respected Tiger Cub Arthur Cohen of HEALTHCOR MANAGEMENT LP with $3.8 billion reported 13F assets last quarter. The shareholders of MDVN had plenty of time to review our data and make a right decision. But most of them ignored fundville at their own peril. The stock dropped from $40 to lower teens in early March, 2010.
MDVN Chart from Yahoo Finance
Another fund, BAM Capital played the bearish biased option strangle or option straddle and should have made some decent profits.
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