Investment Fund Changes in Q3 2019 vs. Q4 2019: Analyzing Broadfin Capital's 13F Holdings

Broadfin Capital, LLC is a well-known investment firm with a focus on the healthcare sector. As per its latest filing with the SEC, it has released its Q4 2019 13F holdings. In the following blog post, we will compare Broadfin Capital's Q3 2019 and Q4 2019 13F holdings and analyze the significant changes witnessed in its portfolio.

Main Body:

The most significant changes in Broadfin Capital's portfolio include an increase in its shares of the iShares Russell 2000 ETF (IWM), a large reduction in its shares of the SPDR Series Trust (XBI), and an increase in its shares of Viewray, Inc. (VRAY). The fund's IWM holding, which is an index of small-cap US stocks, rose from 0 shares in Q3 2019 to 800,000 shares in Q4 2019. The increase in IWM shares is indicative of the scope to capitalize on the micro to small-cap segment of the US market.

On the other hand, Broadfin Capital reduced its position in the XBI substantially. The fund's holding in XBI, which tracks biotech companies, decreased from 700,000 shares to 350,000 shares in Q4 2019, decreasing its exposure to biotech. The reason for this move can be attributed to many individual factors affecting the biotech sector. One driver could be the sector's overall volatility, which is highly impacted by clinical trial results, mergers, and regulatory approvals.

One of the most notable changes in Broadfin Capital's holdings is its increased shares in Viewray, Inc., a leading radiation therapy innovator. It witnessed a 170.3% increase in the number of shares held, from 3,001,361 to 5,574,366. The increase occurred due to multiple factors, including strong clinical results for existing products, FDA approval for a new product, international expansion, among others. These factors point towards positive sentiment and increasing revenue trends in the company, which justify the fund's decision.

Other changes saw the fund take a large position in Biodelivery Sciences Intl. Inc. (BDSI), making it one of the fund's most significant holdings. Similarly, the fund decreased its position in some holdings, such as Alkermes PLC (ALKS), Intersect ENT Inc. (XENT), and Dermira Inc. (DERM).

Conclusion:

In conclusion, Broadfin Capital's Q3 2019 and Q4 2019 13F holdings differed significantly, highlighting the dynamic nature of the market. The fund increased its holdings in Viewray and IWM, indicative of a positive trend in the market, while it decreased XBI, indicating a negative outlook. As with any investment decision, these changes in holdings come with considerable risk, and one must perform significant research and analysis before making any investment decisions.