Polar Capital Funds PLC - Biotechnology Fund I Inc GBP

Specialist

Rated Fund 2018-20. Backs biotech companies of all sizes

Polar Capital Biotechnology joined our Rated Funds in 2018 and continues to be among the best biotechnology funds around. It has beaten the Nasdaq Biotechnology index over all periods and returned more than 200% since its launch in 2013, compared with an index return of more than 100%. Its strong performance and growing following have pushed its assets up from £200 million two years ago to £432 million today.

David Pinniger, its manager since launch, aims to preserve capital and achieve long-term capital growth by investing in companies across the biotechnology ecosystem. He is supported by a team of five healthcare sector specialists.

The team believes a concentrated, actively managed portfolio is the best way for investors to exploit the investment opportunities in the biotech sector.

It uses fundamentals-driven analysis to select a portfolio of, typically, 40-60 stocks (52 at the end of 2018). The 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 2019, the fund had 57% in large companies, 19% in medium and 20% in small, and a small balance in cash. The managers are able to invest worldwide, but the distribution of the biotech industry means that 65% is invested in the US. The fund levies a 10% outperformance fee and ongoing charges of 1.19%, but we deem this acceptable for a specialist fund investing in this area.

Narrative and ratings content all as of 01 January 2020.

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Name
Polar Capital Funds PLC - Biotechnology Fund I Inc GBP
Manager
Polar Capital LLP
Type
Open Ended Investment Company
ISIN
IE00B42P0H75
Sector
Specialist
Launched
31/10/2013
OCF
1.17 %
Risk Rating
3
3 Year Sharpe
0.95
3 Year Alpha
5.74
Yield
0 %
Benchmark
NASDAQ Biotechnology TR USD
The investment objective of the Fund is to preserve capital and achieve long term capital appreciation.
Holding %
Incyte Corp 5.82 %
Vertex Pharmaceuticals Inc 5.35 %
Alexion Pharmaceuticals Inc 5.04 %
Seattle Genetics Inc 4.68 %
NanoString Technologies Inc 4.06 %
Alnylam Pharmaceuticals Inc 3.37 %
Exelixis Inc 2.95 %
uniQure NV 2.71 %
Biohaven Pharmaceutical Holding Co Ltd 2.61 %
argenx SE 2.57 %
Region %
United States 71.32 %
Eurozone 9.04 %
United Kingdom 7.71 %
Europe - ex Euro 7.19 %
Sector %
Healthcare 100.00 %
Name
Polar Capital LLP
Address
SW1E 5JD, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

David Pinniger
Joined 10/31/2013

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.

Data provided by Morningstar.

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