Our deep specialization in life science equity confers sector expertise and thereby positions us to outperform in this niche. Taking specialization to the next level, we concentrate our investment on the “growth biotech” stocks category. This allows us to capture the tremendous upsides in clinical stage and early product bioequities. Growth stocks tend to outperform over the years.
In addition to growth stocks, our fund invests in “turnaround situations.” Though much more risky, turnaround equities usually deliver multiple fold gains, provided that they can make a successful comeback. We also invest in some “stalwarts.” These are companies that have already exhausted their most aggressive growth phase. Nonetheless, they still have 20% to 40% more upside.
Beyond leveraging our forecasting edge, our fund mitigates the tremendous biotech risks by diversification across a broad category of promising growth, turnaround, and stalwart biotech stocks. Diversification improves the chances of capturing a multibagger while limiting the downsides of a catastrophic drop associated with a negative biotech binary event.