Our Strategies

We have adopted tested long/short investment strategies, with leverage, that are focused on generally liquid selections with worldwide spread. Our overarching philosophy is to select what we believe to be the best and most innovative healthcare investments, anywhere in the world, and many of the positions we take will reflect that philosophy and our dedication to identifying new opportunities.

Worldwide Healthcare Investing

The Firm’s worldwide healthcare investment strategy involves investing, primarily through equity securities, in healthcare companies throughout the world, with an emphasis on the United States and other developed countries.The strategy employs modest leverage, is broadly diversified by geography and is designed to be 100% or more gross invested at any time.

Strategy Highlights

  • Typically invests in companies that range in market capitalization between $500 million and $100 billion.
  • Broadly diversified by geography and by healthcare subsector with 15% to 20% emerging markets participation.
  • Holds both long and short positions.

Developed Markets - Health Expenditure as % of GDP

Year USA France Germany Japan Canada Denmark United Kingdom
2019 16.8% 11.1% 11.7% 10.7% 10.8% 10.0% 10.2%

* Source: data.worldbank.org

Emerging Markets Healthcare Investing

The Firm’s emerging markets healthcare investment strategy involves investing, primarily through equity securities, in healthcare companies throughout the world, with an emphasis on emerging markets. Growth of the healthcare industry in emerging markets is considerably faster than that in developed markets. The strategy is broadly diversified by geography and subsector, with long and short positions on about a dozen individual stock exchanges.

Strategy Highlights

  • Typically invests in companies that range in market capitalization between $200 million and $10 billion.
  • Broadly diversified by geography and by healthcare subsector, but major countries of interest include China, India, Korea, Brazil, Argentina, Mexico, South Africa, the CIS (the Russian Commonwealth), and ASEAN (Association of Southeast Asian Nations).
  • Holds both long and short positions.

Emerging Markets - Health Expenditure per Capita in US$ (mil.)

Emerging Markets

Year China Indonesia Vietnam South Korea Brazil Thailand India
2000 $42 $16 $19 $474 $245 $62 $19
2019 $535 $120 $181 $2,625 $853 $296 $64
Compound Annual Growth Rate 17.2% 13.3% 15.2% 11.3% 6.5% 10.2% 8.0%

Developed Markets

Denmark USA Germany France Japan
$2,496 $4,560 $2,332 $2,156 $2,740
$6,003 $10,921 $5,440 $4,492 $4,360
5.6% 5.6% 5.4% 4.7% 2.9%
Year Denmark USA Germany France Japan
2000 $2,496 $4,560 $2,332 $2,156 $2,740
2019 $6,003 $10,921 $5,440 $4,492 $4,360
Compound Annual Growth Rate 5.6% 5.6% 5.4% 4.7% 2.9%

* Source: data.worldbank.org