Home / Business and Economy / Hedge Fund Bets Big on Lantheus Amid Stock Slump
Hedge Fund Bets Big on Lantheus Amid Stock Slump
24 Dec
Summary
- Brigade Capital Management significantly increased its Lantheus Holdings stake.
- The new position represents 2.0% of the fund's managed assets.
- Lantheus Holdings is a healthcare company with diagnostic and therapeutic products.
Brigade Capital Management, based in New York City, significantly expanded its investment in Lantheus Holdings (NASDAQ:LNTH) during the third quarter. SEC filings from November 14 reveal the addition of 173,200 shares, increasing the fund's position by $4.51 million. This strategic move positions Lantheus Holdings as the third-largest holding within Brigade Capital's portfolio, representing 2.0% of its $815.20 million in reported assets under management.
Lantheus Holdings operates in the healthcare sector, specializing in the development and commercialization of advanced diagnostic and therapeutic products. Key offerings include DEFINITY, TechneLite, PYLARIFY, and AZEDRA, serving critical areas such as cardiovascular and oncology. Despite a recent stock price decline of 27% over the past year, the company has demonstrated financial strength, reporting third-quarter revenue of $384 million and nearly $95 million in free cash flow.
The fund's increased exposure to Lantheus Holdings, a company currently out of favor with the market, signals a conviction in its long-term prospects. Lantheus Holdings has remained profitable, executed strategic acquisitions like Life Molecular Imaging, repurchased $100 million in stock, and reaffirmed its full-year revenue guidance. This investment approach indicates a tolerance for volatility, prioritizing cash flow and future growth opportunities.
