Ken Griffin’s castle made a big deal on GSK – what does that mean for investor Ken Griffin’s castle, which is a lot of bets on GSK – this What does it mean for investors – GSK (NYSE: GSK)

Ken Griffinhedge funds fortress Bets of £305 million (US$390 million) have been placed GSK PLC gskThe Financial Times reported that this is the biggest bet on the British pharmaceutical giants.

The position was disclosed to the UK’s Financial Conduct Authority and accounted for 0.51% of Gsk’s outstanding shares.

GSK’s rally faces reality check

GSK shares have climbed 8.20% in the past month, which is a £2 billion ($2.5 billion) share buyback, strong sales of HIV and cancer drugs. However, it still lags behind its companions.

GSK stock has fallen 17.53% over the past five years, while the S&P 500 stock index has soared 45%. Griffin is skeptical of the fleeting signals of the company’s long-term pipeline, especially when it comes to HIV drugs near the patent cliff.

Also Read: Goldman Sachs sends bearish on vaccine maker Dynavax, a uncertainty about shingles and hepatitis C

Hedge funds, analysts split

This is not the first time a hedge fund is hovering gsk. In 2021, radical investors Elliott Management Promote leadership restructuring.

Meanwhile, JPMorgan analysts viewed GSK’s latest earnings and guidance as “positive”, but questioned the timing of the buyback. Barclays called it an “accident” while Jefferies considered it “popular”.

Investor’s Points

GSK’s challenge leads to its future bets, but investors seeking to reach out to big pharma without GSK risk may focus on industry leaders like this Eli Lilly & Co Lai and Pfizer PFE.

or Ishares US Pharmaceuticals ETF IHE and SPDR S&P Pharmaceuticals ETF XPH Provide diversified exposure.

As Castle bets on GSK, the stock’s volatility is likely to increase, which is worth watching.

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