Arctic Aurora LifeScience has been up and running since late May 2016. The performance, both absolute and not least relative to its benchmark and competitors, has been outstanding, and investors are increasingly including the fund as part of their portfolios to seek excess return from the megatrends and innovations influencing this sector.
Why invest in healthcare?
Growth in healthcare is one of the dominating themes for the future. What we know for certain is that we as humans live longer and that the number of elderly increases dramatically. Aging population, innovation and global economic growth are the main forces driving the underlying growth in healthcare. Healthcare already accounts for 10% of global GDP and future growth is expected to exceed global GDP growth.
Diseases are primarily age related, e.g cancer and to meet the demand from a growing population, new medicines are needed. The biotech industry is right now undergoing a transformation based on profound new knowledge in biology and related drug development, resulting in novel therapeutics for previously unmet medical needs. In cancer, scientists are providing new solutions that could transform the treatment into a chronic disease you can live with! In last couple of years there were more drugs approved in the US than in any of the past 15 years. The likelihood of continued success for the sector is high, new disruptive technologies are entering the market backed with strong balance sheets in the companies.
Arctic Aurora LifeScience
Arctic Aurora LifeScience is a specialized global healthcare fund investing in primarily public life science companies with focus on Europe and the US. The team are experienced health care specialists with excellent track record from investing in the public life science sector and with high scientific and industrial competence. By active portfolio management, it offers investors unique exposure to the growth in the biotech and pharmaceutical industries. The strategy is focused on reaching excess return from investments in the biotech sector complemented by investments also in the larger companies such as global pharmaceutical companies.
An investment in Arctic Aurora LifeScience provides
- Exposure to the unique growth in the life science sector through a diversified portfolio
- Potential to extract excess return from the biotech sector
- A proven investment strategy with thorough due diligence of investment opportunities
- Healthcare is a diversifying asset in a general portfolio
- A transparent, established fund structure with daily liquidity available in NOK, USD and SEK class
Why start investing now?
Strong fundamentals with beginning of new era with innovative product development transforming the treatment of diseases. This has attracted high interest from investors in the last 3 years. The biotech sector is well funded thanks to record number of IPOs and capital raises. Sector rotation and political campaigns ahead of US election have taken valuations down to very attractive levels. Large Biotech index has currently (January 2018) lower valuation than S&P 500, many small biotech with good pipeline priced below cash and Big Pharma pipelines almost for free.
Arctic Aurora LifeScience Investment strategy – Active Portfolio Management
Investing in biotech and drug development in general requires deep understanding of biology as well as the function of the regulatory and commercial part of drug development, i.e clinical studies and the dynamics between smaller biotech companies and the larger pharmaceutical companies funding the later stages of development and thereby contributing to value creation.
Arctic Aurora LifeScience conducts active portfolio management with focus on listed biotech companies supplemented by larger global pharmaceutical companies in both US and EU. Investment philosophy is to build a portfolio of successful companies in the life science sector, based on a thorough due diligence process. Due diligence is a combination of top down where the therapeutic areas of medical and commercial interest are selected. Bottom up the universe is screened for companies owning leading science within the selected therapeutic areas and a deep analysis of those companies are undertaken with the aim of finding the best investment opportunities. To maximize risk/reward we only invest in companies with good clinical data. We do not invest in early stage biotech prior to clinical development in patients. Close contact with management teams is essential The portfolio is constructed in relation to risk and expected return, building a diversified portfolio of approximately 40-60 holdings.
Risks include company specific risks, most importantly drug development risk, liquidity risks and general risks such as currency and political risks. The risk in Arctic Aurora LifeScience will be mitigated by portfolio construction, where company risk and portfolio weight is considered, giving a differentiated exposure.
A senior founding team with broad experience and excellent track record
Founder and Chief Investment Officer Ulrica Slåne Bjerke has more than 25 years experience from analyzing and investing in the life science sector. Ulrica has an excellent track record in obtaining significant and repeatable high return of investments. Founder Dr Torbjørn Bjerke has had leading positions in the whole chain within drug development, from scientist in international big companies to positions as CSO and CEO for private and public biotech companies taking products to the market. Analyst Daniel Bolanowski is an experienced analyst within the life science and healthcare field. A team from Arctic Fund Management provides full fund administration including client support, compliance and risk management. Outstanding Advisory Board including 6 senior and very successful individuals from the pharma and investment industry. The team has an extensive global network including executives in the life science industry as well as a profound relation to academia.
Arctic Aurora LifeScience is an equity fund investing in global biotechnology and pharmaceutical companies. The fund is run by former portfolio manager in the Swedish AP3 Fonder, Ulrica Bjerke, as well as Dr. Torbjørn Bjerke, both with 20 years of experience from the market. Arctic Aurora LifeScience was launched in May 2016 with both hedged and un-hedged share classes.
Past performance in Arctic Aurora LifeScience is no guarantee for future returns. Future returns depend on the market, fund manager skill, fund risk level, costs, among others. Performance in the fund may at times be negative and may for this fund vary considerably within periods.