Third Point Trims Position in Nabi Biopharmaceuticals (NABI) ~ market folly

Wednesday, December 22, 2010

Third Point Trims Position in Nabi Biopharmaceuticals (NABI)

Dan Loeb's hedge fund firm Third Point LLC just filed an amended 13D with the SEC regarding its position in Nabi Biopharmaceuticals (NABI). Due to portfolio activity on December 16th, Loeb has disclosed a 9.4% ownership stake in NABI with 4,000,100 shares. They sold shares on dates ranging from the 13th of December to the 20th and at prices from $5.60 to $5.73.

Back in April we revealed that Third Point was selling NABI shares and this time is no different as they've reduced their position from a previous 10.7% ownership down to the current 9.4%. However, Third Point still retains a sizable stake. For more on this hedge fund's latest activity, we posted up Third Point's most recent investor letter.

A potential thesis associated with this investment was revealed by Seth Hamot of Roark, Rearden, & Hamot Capital. It is a play on curing addiction to smoking and Hamot likes the royalty stream as Nabi partnered with Glaxo Smith Kline (GSK) on this vaccine. You can read his NABI thesis here.

Per Google Finance, Nabi Biopharmaceuticals is "a biopharmaceutical company focused on the development of vaccines addressing unmet medical needs in the areas of nicotine addiction and infectious disease. As of December 31, 2009, the Company’s product in development is Nicotine Conjugate Vaccine (NicVAX), a investigational vaccine for treatment of nicotine addiction and prevention of smoking relapse."

To learn to invest like Loeb, check out his recommended reading list.

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