I bought a $150,000 position in Crinetics Pharmaceuticals (NASDAQ: CRNX) for our biotech hedge fund over 2.5 years ago. During that time, not much happened. More than once, I considered selling the position and redeploying that capital into another opportunity.
I’m glad I didn’t.
Instead, I trusted our investment process. I knew that when we own fundamentally strong biotech companies, it’s often not a question of if they’ll make meaningful moves—it’s a question of when.
Today, one of those companies moved sooner than I expected.
News broke that Vertex (VRTX) is acquiring CRNX at $85/share for $10B, and the stock jumped roughly 100%. That single position increased in value by approximately $162,000 for our investors in one day.
Now imagine applying that exact same process to a $100 million portfolio years from now…
The process doesn’t change. Only the size of the dollars does.
One advantage of my investment style is that I don’t watch stocks like a hawk. I don’t spend my days glued to charts or reacting to every headline. Ironically, that makes it easier for me to stay patient and avoid unnecessary distractions.
Instead, I spend my time helping my wife at our pet care business (Precious Paws) and building our holding company, Evergrowth Enterprises. The market can do what it does while I focus on building real businesses.
Most importantly, I’m genuinely happy for our investors.
With today’s move, our fund’s gross return since inception has climbed to over 142.99% in just over 2.5 years—an average of roughly 50% gross per year. Our audited net return last year was 39.1%. For perspective, Warren Buffett generated approximately 29.1% annually during the first three years of The Buffett Partnership.
We’re still early in our story, but today was a rewarding reminder that patience, discipline, and a repeatable process can pay off.
Disclaimer: This post is not investment advice or a recommendation to buy, sell, or hold any security. It is provided solely for informational, educational, and entertainment purposes.
Disclosure: I own CRNX through Evergrowth BioHealthcare Capital. Because the company is being acquired and I believe there is limited additional upside from current levels, I intend to sell our position later today to realize gains for our investors.
To your health, retirement, and superior returns,
Harvey Tran, MD | Chief Investment Officer, Evergrowth BioHealthcare Capital
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