20.05.12

New York-based Hedge Fund Baker Bros. Advisors LLC, as of the most recent SEC 13-F filing for the September 2011 quarter , had $2.1 billion in equity assets, almost all invested in the biotech sector, including 80% in small cap and micro cap equities, and the remaining in mid cap equities.

Brothers Julian and Felix manage the fund, and they have an outstanding record of finding huge biotech winners over the long-term, some of which are reflected in their current holdings as discussed below. Their most recent huge win is in Pharmasset Inc. ( VRUS ) that they bought in 2007 in the mid-single-digits, and that was acquired last month by Gilead Sciences Inc. ( GILD ) for $137.

Brother Julian studied at Harvard and has a business background, and Brother Felix holds a Ph.D. in Immunology from Stanford University. Typically, the fund buys into companies at the lows, basing their decision on a fundamental analysis of the opportunity. With their big winners, as in the case of Seattle Genetics ( SGEN ) and Viropharma Inc. ( VPHM ), they build their positions over a long time, often ending with large 10% plus stakes in the target company.

Source: Seeking Alpha