The global biotechnology market will continue to demonstrate significant growth of 12.8% CAGR over the next several years, from USD 1,224.31 billion in 2022 to USD 3,210.71 billion in 2030. The Fund's primary objective is to identify unique or mispriced investment opportunities in this sector that are underpinned by unmet medical needs, to reduce risk and to enhance clients' capital by making investment decisions based on unique and thorough fundamental research while consistently demonstrating positive Alpha.
Prime Biotech Investments Fund invests exclusively in publicly traded life science companies (biotechnology, pharmaceuticals, diagnostics) based in the United States, Canada, Europe and Australia. Our investments are value-driven and scientifically validated. We select fundamentally undervalued companies with IP-protected products that are either clinically proven or undergoing clinical trials. We focus on companies with strong technologies working to make a difference in areas of unmet medical need.
We employ a market-neutral, long/short strategy, primarily hedging market risk by taking a short position in ETF funds tied to the Nasdaq Biotechnology Index. In its normalized state, the portfolio generally targets gross exposure / net exposure ratios of 150-200% / 0-50% of NAV. Risks are managed by portfolio diversification with limits on individual investments, therapeutic areas, technologies and stages of development. At the asset level, we select companies with diversified portfolios, generally avoiding all-or-nothing scenarios. Where appropriate, we utilize options to improve the reward-to-risk ratio of our investments.
Our main goal is to identify unique or mispriced investment opportunities in this sector, reduce risk and increase clients’ capital by making investment decisions based on unique and thorough fundamental research while consistently demonstrating positive Alpha. Our investments are value-driven and scientifically validated.