Hussman Strategic Advisors Exits Position in Biotech Firm TG Therapeutics
In a regulatory filing this week, Hussman Strategic Advisors, Inc. reported it has sold off its complete holding in TG Therapeutics (NASDAQ:TGTX). The transaction, executed in the fourth quarter, involved 126,000 shares valued at approximately $4.6 million as of the end of September. The position had represented about 1% of the firm's assets under management.
TG Therapeutics is a commercial-stage biotechnology company focused on developing and marketing treatments for B-cell malignancies, such as chronic lymphocytic leukemia, and autoimmune disorders like multiple sclerosis. The company's strategy hinges on a diversified pipeline that includes monoclonal antibodies and small-molecule inhibitors, aiming to fill gaps in hematologic oncology and immunology care.
The divestment coincides with a period of underperformance for TG Therapeutics' stock. Over the past year through late January, shares have declined nearly 12%, starkly contrasting with the double-digit gains of the Nasdaq Composite and S&P 500. This divergence highlights the selective nature of the recent market rally, which has not uniformly lifted all healthcare stocks.
However, the company's operational story shows more strength. TG Therapeutics recently announced preliminary fourth-quarter revenue for its lead product, Ukoniq (umbralisib), reached $182 million. This follows a third quarter where total revenue surged 92.8% year-over-year to $161.7 million, indicating robust commercial traction for its approved therapies.
Analysts note that sales by major institutional investors like Hussman can be driven by portfolio rebalancing or risk management strategies specific to the fund, and do not necessarily reflect a fundamental view on the company's long-term prospects. The biotech sector remains volatile, often swayed by clinical trial results and regulatory decisions as much as by quarterly financials.
Michael R. Chen, Portfolio Manager at a Boston-based healthcare fund: "This is likely a routine portfolio adjustment. Hussman's exit is a single data point. TG's revenue growth is impressive and demonstrates successful commercialization. For long-term investors, the clinical pipeline progress is what matters most."
Sarah J. Phelps, Biotech Analyst: "The stock's underperformance versus the index is painful but not uncommon for mid-cap biotechs in between major catalysts. The market is waiting for broader pipeline validation beyond the current commercial assets."
David L. Foster, Independent Investor (posted on financial forum): "Selling after a 12% drop when the market is up 20%? That's locking in a relative loss. It feels like a classic case of poor timing, especially with those revenue numbers coming in hot. Makes you question the strategy."
Dr. Anya Sharma, Immunology Researcher: "The science behind TG's pipeline is sound. The market sometimes fails to appreciate the long development cycles in biotech. Their focus on B-cell pathways addresses significant unmet medical needs."