Life Science Hedge Fund increased by 109 per cent
Rhenman & Partners Asset Management’s flagship fund Rhenman Healthcare Equity L/S, exclusively focusing on the global Life Science and Healthcare sector, has generated positive results each year since fund inception in June 2009. The fund has returned a stunning 109 per cent since inception. This remarkable achievement has been widely recognized as the fund has been ranked best fund in EuroHedge multiple times, followed by the award for Best Nordic Equity Focused Hedge Fund at the Nordic Hedge Award in Stockholm earlier this year. And this is just the beginning.
Founding Partners Carl Grevelius and Henrik Rhenman are very pleased with the development of the sector fund Rhenman Healthcare Equity L/S. The fund has increased in value despite stock market uncertainty, proving that investments in the broad Life Science sector is a sound choice. Rhenman Healthcare Equity L/S invests in listed companies operating primarily in pharmaceuticals, medical technology, biotechnology and services.
“We invest in areas that are not heavily dependent on GDP growth. This is one of the main reasons why our sector fund has substantially increased in value over the past four years. Another important aspect is that we determine what to invest in based on genuine knowledge and experience, and not based on pre-defined indices. I think this is the main reason why the fund has been so successful”, says Carl Grevelius, Head of Sales & Marketing and Founding Partner.
An interesting area for investment
The results are there in black and white. The Rhenman Healthcare Equity L/S fund has generated an annual compound return of +20.25 per cent. Performance over the last 12 months amounts to +39.34 per cent. In 2012, the fund increased in value by 18.08 per cent. The sector fund is open to the general public and there are currently some 300 investors. Minimum investment is set to 500 SEK and total assets under management are currently 130 million Euro.
“The healthcare sector is undoubtedly an interesting area for investments now and in the future. Small and medium-sized companies are many times significantly expansive and some have generated strong growth over decades. However, it is extremely unproductive to only look at single niche players just because they are listed in your home market, or to examine only the largest global companies. We want a mix of the very best large and small companies in the world in our portfolio in order to spread the risks and to make sure we get exposure to the most interesting growth areas in healthcare”, CEO Henrik Rhenman explains.
Best Fund according to EuroHedge
In the latest issue of EuroHedge, one of the leading publications for hedge funds in Europe, the Rhenman Healthcare Equity L/S was ranked number one based on average annual return among 44 global funds.
"It is gratifying that our fund is ranked as the best performing fund in Europe among so many large, established European hedge fund managers. The healthcare sector makes up more than 10 percent of the world's total market capitalization, so the fund has many investment opportunities to choose from, and the management team has handled this admirably,” says Carl Grevelius.
Nordic Hedge Awards
After the success in EuroHedge, Rhenman Healthcare Equity L/S went straight on to the award of Best Nordic Equity Focused Hedge Fund at the Nordic Hedge Award, arranged by Nordic Business Media AB.
The original selection for the Nordic Hedge Award consisted of about 130 funds, where the asset manager, the management company or the fund is domiciled in the Nordic region. Five funds were shortlisted in each of seven different asset management categories. A jury consisting of six industry professionals voted individually to determine the final ranking order within each category.
“We offer a competitive hedge fund on the Swedish and European market with a special scientific touch. A fund consisting of a wide range of Life Science companies in various fields and sizes. Our Scientific Advisory Board is critical in our selection process and we review our investments thoroughly on a regular basis with them and others. Actually, our continuous investment review is as important as the initial investment decisions”, Henrik Rhenman concludes.
Rhenman & Partners in brief
Rhenman & Partners Asset Management is a Stockholm-based niche player focusing on the healthcare sector. The company's assets under management amount to over 1 billion SEK. Rhenman & Partners was founded in 2008 by a group of individuals with extensive experience of the asset management sector, as well as an unrivalled track record in the healthcare sector. The Rhenman Healthcare Equity L/S fund is unique in that it is supported by a Scientific Board composed of eminent professors who have a wide network of scientists and experts at several recognized institutions worldwide, including the Karolinska Institute. For more information, please visit www.rhepa.com