Polar Capital Funds PLC - Biotechnology Fund I Inc GBP
Rated Fund 2018-19. Backs biotech companies of all sizes
Polar Capital Biotechnology joined our Rated Funds in 2018 and continues to beat the Nasdaq Biotechnology index over all time periods. Its strong performance and growing following has seen its assets grow from £200 million to £375 million over the past year.
It aims to preserve capital and achieve long-term capital growth by investing in companies across the biotechnology ecosystem. Lead fund manager David Pinniger has run the fund since its launch in 2013. He is supported by a team of six healthcare sector specialists who have more than 115 years of industry experience between them.
The team believes that a concentrated and actively managed portfolio is the best way for investors to exploit the investment opportunities found in the biotech sector. They use fundamentally driven analysis to select a portfolio of typically 40 to 60 stocks (46 at the end of 2018). Their strategy is to use an unconstrained approach to portfolio construction and stock selection, in particular to invest beyond the mainstream larger biotechnology companies that dominate the index.
At the end of 2018, the fund had 53% in large companies, 25% in medium companies and 12% in small companies, with the 10% balance in cash. The managers are able to seek investments world-wide, but given the nature of the industry have almost 60% in the US. They also have exposure across Europe and to China.
The fund levies a 10% outperformance fee and ongoing charges of 1.21%, but we deem this to be acceptable for a specialist fund investing in this area.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Alexion Pharmaceuticals Inc||6.76 %|
|Incyte Corp||6.33 %|
|argenx SE||6.05 %|
|Regeneron Pharmaceuticals Inc||5.99 %|
|Amgen Inc||5.38 %|
|Vertex Pharmaceuticals Inc||4.64 %|
|Evotec SE||4.57 %|
|NanoString Technologies Inc||4.47 %|
|Novo Nordisk A/S B||4.30 %|
|Genmab A/S||4.22 %|
|United States||66.69 %|
|Europe - ex Euro||9.93 %|
Daniel Mahony Ph.D. joined Polar Capital to establish the healthcare investment team in 2007. He is joint manager of the Healthcare Opportunities Fund and lead manager of the Healthcare Blue Chip Fund. Prior to joining Polar Capital, he was head of the European healthcare research team at Morgan Stanley, covering the European biotechnology, medical technology and healthcare services sectors. He also previously worked in New York for ING Barings Furman Selz following the US biotechnology sector. Before working in the investment field, Daniel worked as a research scientist for seven years with the majority of his time at Schering Plough Corporation in California. Daniel received his PhD from Cambridge University in 1995 and a first class honours degree in biochemistry from Oxford University in 1991.
David Pinniger joined Polar Capital in August 2013 as lead manager of the Biotechnology Fund within the healthcare team. Prior to joining Polar Capital, for five years David was portfolio manager of the International Biotechnology Trust at SV Life Sciences. He also previously spent three years working at venture capital firm Abingworth as an analyst managing biotechnology investments held across the firm’s venture and specialist funds, and four years at Morgan Stanley as an analyst covering the European pharmaceuticals and biotechnology sector. David received a first class honours degree in human sciences from Oxford University in 1999 and is a CFA charterholder.
Gareth Powell joined Polar Capital in 2007 to establish the healthcare investment team. He is joint manager of the Healthcare Opportunities Fund. He joined Framlington in 1999, later becoming a portfolio manager on the Framlington Health Fund. In 2002, Gareth helped launch the Framlington Biotech Fund, which he managed until his departure. Gareth studied biochemistry at Oxford, during which time he worked at Yamanouchi, a leading Japanese pharmaceutical company (later to become Astellas), as well as various academic laboratories including the Sir William Dunn School of Pathology, the Wolfson Institute for Biomedical Research and Oxford Business School. He is a CFA charterholder.
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