Managers with long experience
Henrik Rhenman and Susanna Urdmark are the fund’s portfolio managers. Henrik, originally a biochemist, brings over 25 years of experience in asset management in the healthcare sector, from both Sweden and the US. Susanna Urdmark is an economist with over 20 years of experience in the healthcare sector. Susanna has followed the sector as an analyst and has also worked operationally as CFO for a Swedish pharmaceutical company that manufactures medical generics.
Kaspar Hållsten, Hugo Schmidt and Amennai Beyeen work with Henrik and Susanna on all aspects of the investment process.
Unique investment process
A contributing factor to the fund’s great success is the co-operation between the portfolio managers and the Scientific Advisory Board. The Advisory Board consists of well-established practicing medical experts who have contact with a large network of researchers and specialists all over the world.
Gaining access to members’ medical expertise provides managers with invaluable insights and understanding of clinical trials, as well as new drugs, techniques and treatment methods.
Henrik Rhenman founded this successful investment method in the late 1990s when he started a global healthcare fund for his employer at the time. During the ten years (1998–2008) in which Henrik acted as the CIO for the fund, it was named the world’s best healthcare fund (according to Bloomberg’s database) with an increase of 799% in US dollars. During the same period, the world index rose by 40%.
The fund offers diversification
To limit risks, we strive for a portfolio of highly liquid companies. Normally, the fund has 60–80 core holdings in order to achieve proper diversification. An investment in an individual company typically does not exceed 8% of the fund. The fund aims to have a maximum of 20% of the capital in companies that are in the development stage and are not yet cash-flow positive. Another risk diversification target is that an individual negative corporate event should not weigh on the fund’s performance by more than -1 %.
Our investment strategy also includes utilizing the hedge fund’s more flexible investment mandate in order to create value and limit risks. However, it should be noted that the fund has a positive bias in the long term and in no way is market neutral. The managers use derivatives and futures both to protect capital and to generate returns.