A biotech hedge fund that counts Yale’s endowment among its clients bought a new stake in this genetic testing company
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Baker Bros. Advisors, a hedge fund that lists Yale University’s endowment and the Tisch family among its clients, added a new stake in InVitae in the second quarter and cut back on its top holding Seagen. Founded by brothers Julian and Felix Baker in 2000, the health-care hedge fund focuses on biotech and life sciences investing. The founders, who have a background in immunology, used their experience to capitalize on the sector’s boom over the past decade. The portfolio has 110 holdings and a very low turnover rate. Baker Bros. built a significant new stake in Invitae in the second quarter, according to InsiderScore. The genetic testing company is the hedge fund’s eighth-largest holding, valued at $135 million. But the stock has slid 44% this year. The hedge fund added to Acadia Pharmaceuticals , its fourth-largest holding, increasing the stake by 2.2%. The biotech stock with a focus on neuroscience has surged more than 84% this year. Baker Bros. doubled down on its bet in Kymera Therapeutics , which it raised by more than 51%. The biotech stock is down 21% this year. The hedge fund also took new stakes in ImmunoGen , which has more than tripled this year, soaring 216%, and Day One Biopharmaceuticals , which is down by 34%. Another new holding is Cogent Biosciences , which is up by just 7%. However, Baker Bros. notably took some profits in its largest holding Seagen in the second quarter after the stock surged 51% this year. The hedge fund lowered its exposure to the biotech company, which develops treatments for cancer, by 5%. Still, Seagen remains Baker Brothers’ No. 1 holding, valued at roughly $8.6 billion as of the end of June. — CNBC’s Yun Li contributed to this report.
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