Jan. 12 at 4:22 AM
David Einhorn, Greenlight Capital, focuses on intrinsic value to achieve consistent absolute returns. In Dec 2023, he expanded the portfolio with
$COYA
On the surface this makes NO sense.
Generally, value-oriented fund managers avoid small-cap biotechs due to the inherent conflict with traditional value investing principles, such as:
• Binary 🚩 Outcomes (High Volatility): Hinged on "pass or fail" clinical trials. These "boom-or-bust" dynamics introduce risk and speculation that is inconsistent with risk-mgmt approach of these funds.
• Complexity 🚩: The science involved in biotech is complex and difficult for generalist fund managers to understand and forecast, hence many avoid this sector altogether.
Again, this makes NO sense … UNLESS, there’s something other value-oriented funds don’t know ☺️
⛳️ʰᵒˡᵉ ᶦⁿ ᵒⁿᵉ
Einhorn has a history of engaging with management to drive changes that unlock shareholder value. He has stated that he "prefers this tiny biotech over AI 'excitement'"!
He views Coya's potential treatments as having an "excellent chance" of receiving FDA fast-track approval if trials succeed. The stock has experienced high volatility and is down currently, but Greenlight maintains a positive long-term view (as I do).
He is the LARGEST shareholder in Coya, owning a significant stake (around 8-9% of outstanding shares).
• Rationale: Views COYA as an undervalued "speculative" investment compared to the highly valued AI sector. Notably a promising drug for ALS (Lou Gehrig's disease) that has an "excellent chance" of receiving fast-track FDA approval if trials are successful. A recent Nobel Prize awarded to a member of COYA's advisory committee further bolstered investor confidence ✅
• Activity: Greenlight began building a position in COYA in Q4 2022 and has increased its holdings multiple times since then.
Additionally, there's a strong relationship between Dr. Reddy's Laboratories
$RDY 🤝 Coya w/ licensing and collabs to develop AND commercialize COYA 302 for neurodegenerative diseases, primarily Amyotrophic Lateral Sclerosis (ALS). RDY provides significant funding (upfront payments + milestones) and manufacturing expertise, while Coya leads clinical development, with RDY gaining commercial rights in certain territories and potentially other diseases like Alzheimer's (AD) and Parkinson's (PD).
Greenlight Capital, also holds a position in Gain Therapeutics
$GANX whose lead drug candidate (GT-02287) for GBA1 Parkinson's disease currently in Phase 1 clinical trials.
https://en.wikipedia.org/wiki/David_Einhorn_(hedge_fund_manager) ♦️♣️♥️♠️
P.S. IDK if David actually plays golf, but he does "play" poker. In 2012, David donated his winning from a tournament in which he won
$4,352,000 to an educational nonprofit organization ❤️
