HealthCor Management, L.P. Raises Stake in Dynavax Technologies Corporation (DVAX) to 9.18%

November 21, 2012 2:22 PM EST
In a 13G filing on Dynavax Technologies Corporation (NASDAQ: DVAX), hedge fund HealthCor Management, L.P. disclosed a 9.18%, or 16,400,000 share, stake in the company. This is up 105.00% from the 8,000,000 shares held at the end of the latest quarter ending September 30, 2012.

For more notable holders of Dynavax Technologies Corporation stock click here.

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Looks Like HealthCor Got Burned
Duediligencerules on 2012-11-21 19:52:47
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The event date on the 13G filing is Nov 13, 2012. That date coincides with the release of the briefing documents. The plunge, following the surprise Advisory Committee safety vote, came AFTER Healthcor had already made their purchase and raised their stake in DVAX.

In plain English, it means that they made a big bet that there would be no problems with the Advisory Committee (As did everyone else). The Nov 21 date at the end of the document is just the filing and signature date.

On the surface, the filing looks bullish, but actually, it's bearish. My point: Who knows what Healthcor will do prior to PDUFA. Chances are, they might reduce or sell out of their entire position. That mixed Adcom safety vote is a real black cloud hanging over the stock at this point. If they liquidate any or all of their position, that would certainly put pressure on the stock.

Short term losses could be offset through realized profits on their original investment, assuming they've been in the trade for some time, which I believe they have. Moreover, I think they waited for a bounce prior to filing the 13G.

Please note that this is just my opinion, but I've been around long enough to know how this game is played. Lastly, there may be others out there that made the same mistake and may be faced with a similar decision.

Good luck to everyone!

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