Hedge fund manager Dan Loeb recommended Amgen's stock on Tuesday, causing its shares to rise about 4 percent on the news.
Loeb, head of hedge fund firm Third Point, spoke of the company at the Robin Hood Investors Conference in New York. Third Point also simultaneously sent a letter to investors discussing the position. Amgen is not a new stake; Third Point held 450,000 shares as of June 30, according to a regulatory filing. But Third Point is now "one of the company's largest shareholders," according to the letter.
"We believe the obscured fundamental value and investor skepticism that have led to Amgen's valuation discount can be easily unlocked," the letter said.
It listed three "immediate" actions Amgen could take to add value: "focusing its R&D efforts;" "providing long‐term margin guidance demonstrating a commitment to reducing a bloated cost structure" and "creating clarity on additional shareholder returns."