Question of the Day: BioMarin Pharmaceutical (BMRN)
Q: Why are two hedge fund heavyweights, SAC Capital and Citadel LP, buying up shares of biotech company BioMarin Pharmaceutical Inc. (Nasdaq: BMRN).
Today SAC disclosed they own a 5.1% "passive" stake (4,882,700 shares) in the company. This is up from the 1,412,000 share stake the firm disclosed at the quarter ended March 31, 2007. In late April, Citadel LP disclosed a 5.52% "passive" stake (5.575 million shares) in the company.
A: We don't know. But does it really matter? They apparently see something and it would be safe to assume the stock has a good chance of outperforming.