ZURICH (Reuters) - Activist investor Elliott Management Corp has become the second largest shareholder in Switzerland's BB Biotech (S:BION), an investment firm with holdings in about 30 biotech companies.
A Luxembourg-based subsidiary of the U.S. hedge fund, founded by billionaire Paul Singer, owns 3.1 percent of BB Biotech shares, a filing by the Swiss stock exchange showed, above Switzerland's mandatory disclosure threshold of 3 percent.
Only Biotech Target N.V. now owns more shares in the Zurich-based company with 3.9 percent, according to a July 28 filing.
Elliott is closely watched in the hedge fund industry for its strong returns and willingness to wage lawsuits. It has a track record of pushing for radical change at a range of firms.
In 2011, Elliott pushed for change at the top of Actelion (VX:ATLN), Europe's biggest biotech company, but the New York-based fund's attempts were rebuffed by other shareholders.
BB Biotech's holdings were worth 2.88 billion Swiss francs (2 billion pounds) at the end of September. Its biggest holdings were in biotech companies Celgene (O:CELG), Gilead (O:GILD) and Actelion, according to its website.
Shares in BB Biotech have outperformed the European healthcare sector in recent years. The Swiss firm's shares have climbed 48.4 percent so far in 2014, while the healthcare sector index is up 17.1 percent.
Over the past two years, the company's shares have risen 143.8 percent against a 45.2 percent rise in the sector index.
BB Biotech published a statement on Monday confirming the Elliot stake. A spokeswoman for the Swiss company declined to comment further.
A representative for Elliott could not immediately be reached for comment to discuss the fund manager's plans for its BB Biotech stake.
(Reporting by Ruppert Pretterklieber and Joshua Franklin; editing by David Clarke)