Smart Biotech Hedge Fund Worth Watching Had Therapeutics MD Before Pop

Biotech stock Therapeutics MD (TXMD) was up 32.5% on Tuesday, lifted by brokerage house FBR Capital initiating coverage with an incredible $34 price target. Based on TXMD’s Tuesday closing price of $5.47, the FBR price target would mean a 600% return.

TXMD is owned by the billion-dollar biotech hedge fund RA Capital Management. RA is experienced in the business of biotech investing, and owns more than 6% of TXMD.

RA is one of our favorite hedge funds to piggyback. It’s run by Peter Kolchinsky, a PhD from Harvard. The fund has one of the best track records in the world, averaging 41% a year since 2002.