Eversept Partners is a New York based hedge fund, mostly interested in investing in health sector. The fund’s current portfolio manager, Kamran Moghtaderi, was its founder as well. Mr. Moghtaderi holds a Masters degree in Business Administration from Harvard University. Prior to launching his own fund, he gained investment experience working on various positions in different companies. First, he worked at Gambro Group, then he served as a Global Research Analyst at J&W Seligman & Company. Later on he worked as an Analyst and Portfolio Manager at Apis Capital Advisors, LLC. For Eversept Partners, Mr. Moghtaderi decided to apply a long/short strategy focusing on healthcare companies.
During the last several years, Mr Moghtaderi’s strategy proved to be very efficient. In 2014 the fund returned 43.43%, followed by 11.3% in 2015 and 43.39% in 2016. In 2017 the figure was somewhat lower, but positive 2.24%, followed by 4.91% in 2018. Year to date, as of June 2019, Eversept Partners delivered a return of 13.82%, and generated an annualized return of 17%.
Our short strategy is based on shorting hedge fund hotels that are likely to experience large hedge fund sales during market weaknesses. We launched this strategy in February 2017. It’s been almost 3 years and the stock picks of this strategy lost a cumulative 27.8% vs. a cumulative gain of 39% for the S&P 500 ETF. This is an absolutely mind blowing performance. The annualized return of our short picks is -9.3%, vs. 12.7% annualized gain for the S&P 500 Index during the same period. The annual alpha of this strategy is 22 percentage points. Jim Chanos doesn’t generate this kind of performance. The best thing about this short strategy is that it provides an excellent hedge during market meltdowns. For example, in Q4 of 2018 when the S&P 500 Index lost nearly 14%, this strategy’s picks lost 25% protecting our premium subscribers from large losses (see the details here).
The fifth most valuable position in Eversept Partners’ portfolio for Q3 2019 was Ascendis Pharma A/S (NASDAQ:ASND). The fund boosted the position by 74%, which brought it up from 8h place in the fund’s portfolio since Q2 2019. Heading into the fourth quarter there were 33 hedge funds bullish on the stock, the same figure since Q2. RA Capital Management held the most valuable stake in the company, which was worth $398 million. OrbiMed Advisors, Baker Bros. Advisors, Vivo Capital, and venBio Select Advisor were also among the company’s top shareholders for this period, as you can read more about it here.
The fund’s fourth top stock pick for Q3 2019 was Zogenix, Inc. (NASDAQ:ZGNX). The position was boosted by 20%, now amassing 8.04% of the fund’s portfolio. A total of 34 hedge funds were bullish on the stock at the end of Q3, a change of 21% compared to Q2. Among them, Cadian Capital was the company’s top shareholder, which reported holding a stake worth $139.1 million. Among other hedge funds allocating large portions of their portfolios to Zogenix, Inc. were Perceptive Advisors, RA Capital Management, Great Point Partners, and venBio Select Advisor (see more details here).
At the third place in Eversept Partners’ latest 13F holdings was Danaher Corporation (NYSE:DHR). The position was boosted by 24% during the quarter, which brought it up from the fifth place in the fund’s portfolio. Heading into Q4 2019, there were 57 hedge funds investing in the stick, which is a decline of 2% compared to the previous quarter. The company’s top shareholder was Third Point, with a stake worth $535.8 million. AQR Capital Management, Akre Capital Management and Impax Asset management were also among the top hedge funds investing in Danaher Corporation in Q3 (see more details here).
The second most valuable position in Eversept Partners’ portfolio for Q3 was The Ensign Group, Inc. (NASDAQ:ENSG). Mr. Moghtaderi decided to boost the position by 93%, bringing it up from the 6th position in the fund’s portfolio. As for the company’s shareholders, there were 14 hedge funds bullish on the stock at the end of Q3, a change of -18% compared to Q2. Winton Capital Management was the company’s top shareholder, holding a stake worth $25.6 million. Eversept Partners was Ensign Group, Inc.’s second top shareholder. The fund reported holding 586,675 shares worth $17.4 million, which took 8.69% of its portfolio. Other hedge funds fond of the company included AQR Capital Management, Polar Capital, and GLG Partners, as you can read in more detail here.
Finally, Eversept Partners’ top stock pick for Q3 2019 was GlaxoSmithKline plc (NYSE:GSK). The fund boosted the position by 42% and the company now comprises 13.21% of its portfolio. Heading into Q4 2019, there were 26 hedge funds tracked by Insider Monkey bullish on the stock, a change of 4% compared to the previous quarter. The company’s top shareholder for this period was Renaissance Technologies, which reported holding $749.1 million worth of stock at the end of the third quarter. Other hedge funds interested in the stock during Q3 were Fisher Asset Management, Arrowstreet Capital, and Ariel Investments (read in more detail here).