Alphyn Capital on Its Special-Situation Investment: AnaptysBio (ANAB)

Alphyn Capital Management, an investment firm, detailed its second-quarter 2026 performance, revealing a minuscule 0.6% net return, contrasting sharply with the 15.2% achieved by the S&P500. The fund's top ten positions constituted about 72% of its portfolio, with the rest in cash and short-term treasuries. The letter revealed Alphyn Capital had adopted a new strategy of scrutinizing investments more rigorously, discarding those whose initial rationale had shifted.

Alphyn Capital's Q2 2026 letter spotlighted AnaptysBio, Inc. (NASDAQ:ANAB), a clinical-stage biotech specializing in immunology treatments for autoimmune and inflammatory diseases. The company, having shrunk to fewer than ten employees and less than $10 million in annual costs post-April, derives its primary asset—a royalty on GSK's cancer drug, Jemperli—from a separation that saw its clinical pipeline transferred to another entity.

AnaptysBio's royalty begins at 8% and escalates to 25% once annual sales of Jemperli exceed $2.5 billion. GSK had targeted more than $2.7 billion in annual sales, with Jemperli already exceeding $1.1 billion in sales in 2025. Alphyn Capital's optimism stemmed from AnaptysBio's pre-purchased shares and contracted future royalties, which they believed could result in a value of $55 to $65 per share under a base case scenario.

Should a ruling bolster GSK's commercialization commitments or enhance AnaptysBio's royalty economics, the estimated value could stretch from $70 to $105 per share. Despite AnaptysBio's notable absence from their list of the 40 most popular hedge fund stocks, the fund staff recognized its potential and underscored the appeal of other AI stocks, which they believed offered greater upside with less risk.