MONTREAL (HedgeWorld.com)–A manager of a biotech hedge fund, Sectoral Asset Management has found a number of ways to leverage its expertise in the biotechnology and healthcare sectors.
The firm is launching a new offshore private equity fund and is considering the launch of a market-neutral hedge fund next year. The firm also appointed to its board of directors Frederick Frank, vice chairman and managing director of Lehman Brothers.
With US$1 billion in assets under management, Sectoral now has US$22 million in its S.A.M. Healthcare/Biotech Equity Fund I, a hedge fund with a long bias. Since the funds’ launch in July 2001, manager and founder Michael Sjostrom has kept the biotech strategy 70% to 80% net long.
The market-neutral fund would be similar in strategy except the exposure to the market would be limited. The firm depends heavily on fundamental analysis of the biotech sector, an area that has been hard hit by the lagging economy.