Adage Capital Ups Allergan Stake, Cuts Black & Decker, Shire

Feb 17 2015 | 2:33pm ET

Adage Capital Management added more than 800,000 shares of pharmaceutical giant Allergan last quarter.

In a 13F filing, the Boston-based hedge fund revealed a stake worth more than $270 million at the end of 2014. It was the largest increase of any of Adage’s previously disclosed positions. 

Allergan was the target of activist investor Bill Ackman last year in which Pershing Square Capital Management teamed up with Allergan competitor Valeant Pharmaceuticals to attempt a hostile takeover of the firm. 

The contentious bid was ultimately foiled when Allergan agreed to be bought by Actavis in November 2014 for a significantly higher price. 

The same filing showed that Adage reduced its stake in toolmaker Stanley Black & Decker by more than two million shares, leaving a token stake worth just $22 million at the end of December. The fund also liquidated its $846 million position in Shire Pharmaceuticals during the period. 

Adage was formed in 2001 by former Harvard Endowment managers Phillip Gross and Robert Atchinson. The firm manages roughly $54 billion in endowment and institutional capital. It reported positions in more 700 companies in the filing, with 109 new entrants.

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