RA Capital’s Q1 portfolio shows 18 new positions. Ascendis, ChemoCentryx were top holdings.

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RA Capital has outperformed all other healthcare hedge funds over the past decade, based on 13F holdings. In fact, RA’s 30.88% annualized return of it’s equal-weighted top 20 long portfolio led all other hedge funds over that period. So, when RA manager Peter Kolchinsky discloses portfolio changes, investors may want to pay attention. RA Capital’s Q1 portfolio disclosed yesterday shows that Kolchinsky reduced or closed-out only 8 stocks of the 41 held at the end of Q4. Meanwhile he established or added to 25 positions.

RA Capital Management 10 year performance of top 20 equal-weighted holdings, rebalanced quarterly when new 13Fs are filed.

RA Capital’s #1 position is Ascendis Pharma. Up 800% since bought in 2015.

RA’s top position is Ascendis Pharma (ASND), representing 17.48% of RA’s portfolio. ASND is a biopharmaceutical company focused on extended-release technology. The stock was first disclosed as a RA holding in Q1 of 2015, when it traded at just over $17. The stock closed at $139.9 on May 15. Much of the holding’s $553M value reflects appreciation, but Kolchinsky did add to the position last quarter for the first time since Q3 2016.

The hedge fund’s top holding as of Q4 2019 was Synthorx Inc. (THOR) at 20.61% of the portfolio. However, RA closed the position in Q1 as the company was bought out by Sanofi SA (SNY).

Possibly most interesting in RA Capital’s Q1 portfolio, are the multiple new positions added by the fund during the hyper-volatile quarter which saw the S&P 500 drop over 35% in just a month. It’s a good bet that, given RA’s impressive history of picking health care stocks, many of these new holdings will be big winners. Indeed, many of them have already appreciated significantly since March 31.

RA Capital’s new positions — Q1 2020.

StockSymbolShares HeldMarket Value% of PortfolioRanking% OwnershipAvg Price
Exelixis incEXEL4,524,96177,920,0002.46%151.48%17.77
Avalanche biotechnologies incADVM7,272,71471,054,0002.24%179.13%9.77
Black diamond therapeutics  inc.BDTX2,589,90464,618,0002.04%197.21%22.93
Verastem incVSTM18,604,65149,116,0001.55%2311.73%24.95
Gilead sciences inc.GILD548,00040,968,0001.29%250.04%11.75
Arcutis biotherapeutics  inc.ARQT1,165,18434,722,0001.10%283.06%12.37
Adaptimmune therapeutics plc adrADAP12,541,88834,114,0001.08%299.64%28.47
Trillium therapeutics incTRIL6,361,44625,700,0000.81%327.69%2.64
Imara incIMRA1,454,34823,313,0000.74%348.77%36.81
Compugen ltdCGEN2,957,43421,471,0000.68%353.85%74.76
Immunogen inc.IMGN5,166,30317,617,0000.56%362.96%13.03
Novocure ltdNVCR259,09917,448,0000.55%370.26%7.21
Concert pharmaceuticals incCNCE1,858,47416,429,0000.52%386.27%29.80
Passage bio  inc.PASG322,6305,081,0000.16%420.70%2.72
Uniqure n.v.QURE82,1803,899,0000.12%430.19%28.16
Selecta biosciences incSELB870,6332,098,0000.07%461.01%10.74
Insmed incINSM87,4051,401,0000.04%470.10%4.04
Vericel corpVCEL100,000917,0000.03%480.22%29.17

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