Life science investment group Abingworth Management has launched a specialist fund aimed at high net...
Life science investment group Abingworth Management has launched a specialist fund aimed at high net worth investors, which will invest in under-appreciated life science stocks.
The Abingworth BioEquities Fund (ABE), which will be managed Joe Anderson, will invest broadly across the life sciences field including human therapeutics and healthcare. As well as investing in small and mid-cap stocks in the open market, ABE will also invest in public companies through PIPEs and negotiated transactions.
Anderson, who is a partner in Abingworth as well as portfolio manager, said: "Many development-stage firms in life sciences have outstanding growth potential but their shares are often mis-priced due to increasing stock market volatility, diminishing coverage of earlier-stage companies by equity analysts and the pressure on public mutual funds to satisfy short-term-oriented performance benchmarks."
ABE has been structured to approach these stocks with a venture mindset and allow for a longer-term investment view. Demand for new medicines is increasing as populations age and pharmaceuticals seek to fill their product pipelines.
The portfolio will have between 15-25 stocks in it. However, as biotech stocks can be very cyclical Anderson will be prepared to revert to 100% cash if he can not find any opportunities in the market.
This is the seventh life science fund Abingworth has launched. Anderson joined the company back in early 2003 from First State where he ran a Global Health and Biotechnology Fund.
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets