Actionable news
0
All posts from Actionable news
Actionable news in XOMA: XOMA Corporation,

Baker Bros. Advisors Dump 75% Of Stake In XOMA Corp (XOMA) after Late-Stage Study Failure

Was Baker Bros. Advisors‘ investment in XOMA Corp (NASDAQ:XOMA) a mistake? According to a recent filing with the Securities and Exchange Commission, the fund has dumped 78% of its stake in the company. Around 11 million shares were sold at a price of $1.09 each, leaving Baker Bros. Advisors with a holding of 3.71 million shares. Was Julian and Felix Baker‘s decision to limit exposure to the company dictated by one of XOMA’s drug failing in a late-stage study?!

Felix Baker - Baker Bros.

First a quick word on why we track hedge fund activity. In 2014, equity hedge funds returned just 1.4%. In 2013, that figure was 11.3%, and in 2012, they returned just 4.8%. These are embarrassingly low figures compared to the S&P 500 ETF (SPY)’s 13.5% gain in 2014, 32.3% gain in 2013, and 16% gain in 2012. Does this mean that hedge fund managers are dumber than a bucket of rocks when it comes to picking stocks? The answer is definitely no. Our small-cap hedge fund strategy, which identifies the best small-cap stock picks of the best hedge fund managers returned 28.2% in 2014, 53.2% in 2013, and 33.3% in 2012, outperforming the market each year (it’s outperforming it so far in 2015 too). What’s the...


More