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Bailey McCann, Opalesque New York: This is our regular report on hedge funds and alternative asset managers who are successfully protecting assets and outperforming the markets during the first months of 2020.
Biomedical companies continue to outperform
Vista Point Capital's flagship biotech fund - Parallax Biomedical Fund was up 2% (est.) in June and is up 11.7% year to date through June 30th. The fund was also up in Q1 2020 and ended 2019 up 54.20% following strong activity in the sector.
Biomedical companies have outperformed in recent months as the demand for covid-related solutions heats up alongside a growing demand for biomedical services overall. Biomedical companies like Moderna, for example, are working on a potential vaccine for Covid-19. The US government's Operation Warp Speed, which provides funding to fastrack the development of a coronavirus vaccine, provided a significant capital injection to a group of biomedical companies that could begin work on a coronavirus vaccine immediately. Most of that funding went to large-cap biomedical companies, but small-cap biomedical companies with products in the pipeline often become targets for acquisition by large-cap companies in this sector.
Parallax makes investments in small-cap biotechnology and medical technology companies. The investment team is typically looking for companies that have later stage products in development or those that have low valuations with room to grow. The strategy takes advantage of the high barriers to entry for biomedical companies. The field is complex and inefficient which lead to dislocations in the stocks that can be beneficial for opportunistic traders. The fund runs a concentrated portfolio of 20-25 core positions and invests in both US and European companies.
Vista Point is led by Marc Pentopolous. Pentopolous founded Katana Pharmaceuticals and has decades of experience in medical technology, drug development, and finance. He also led Emerging Growth Management's medical technology strategy.
Marc Pentopolous will be a presenter in our fourth Corona Fighters webinar discussing the biomedical sector and other portfolio diversifiers. Registration is free.
View prior reports: Report 54
Webinar: The Corona Fighters Episode 4
Meet five more asset managers who delivered during the meltdown.
Time: Tuesday, July 21st, 10 am EST
Details and registration: www.opalesque.com/webinar/
New eBook: The Corona Fighters COLLECTION - A Handbook for Investors
200+ funds that were up or protected assets in Q1 2020: A Compendium of Opalesque Corona Fighters Report #1 to Report #52
Download here: www.opalesque.com/ebook.
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Disclaimer: This is not investment advice. Opalesque has not verified this information and gives no warranty of accuracy or completeness. Past performance is not indicative of future results. See our Terms & Conditions for more information.
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