Arctic Aurora LifeScience, a fund investing in innovative biotechnology and pharmaceutical companies, is turning 1 year – today! The fund has established itself among the top performers in the space and have managed to reach a total investment of NOK 1,5 bn in a relatively short time. Though still young, the one year anniversary calls for an opportunity to reflect on the year that has passed, and for Chief Investment Officer, Ulrica Bjerke, to share some thoughts on the time to come.
Congratulations on the funds one year anniversary. As they would say in sport; what do you feel now?
- I am pleased with the good start and happy that we are able to deliver a good return to our investors. It has been a good year, a busy year, but great to see that our combined knowledge and approach that we have along with analyst Daniel Bolanowski, is something that the market seem to appreciate.
Since the start, the fund has grown to 1.5 billion - in just one year?
- I'm proud and humble of being able to attract so much capital in such a short time. An AUM in that size class is important as it allows more major investors to invest in the fund and signals that we as trustees are long-term established in the market.
The performance of the fund has placed it very well among international players, at times at the very top. What is the most important thing when you select your investments?
- Two words; innovation and quality. We are looking for companies that have products that can make a real difference for the patients, and therefore have good prospects of commercial success. In addition, we have a detailed analysis model with a long "checklist". And of course, we also take into account factors such as management, balance sheet and valuation of the various companies.
What have been the highlights and which company investments have you been the most pleased with?
- An important part of our investment strategy is to find M&A candidates where we receive large premiums in the case of buyouts of the portfolio companies.
One such company, whom we invested in from the start, was Vitae Pharmaceuticals, which we considered a clear M&A candidate. We utilized the volatility of the stock and increased our position during last year’s summer. Already in September, the company was purchased by the American company Allergan with a premium of 160%. This was obviously a great start for us.
What can we expect in the next year from Arctic Aurora LifeScience?
All our clients can expect us to work very hard and our aim is to continue to generate a good return for our investors. As before, we will continue to focus on oncology as part of our stated strategy from the beginning of the fund.
Cancer awareness has increased significantly in recent years and there is so much innovative research in the area. We are pleased to see that the new products coming to the market are significantly better than existing treatments, due to more targeted treatment and the new so-called immuno-oncology. The investments we made from the start have had a very strong development last autumn and has been a strong contribution to our excess return. On a more humane level, this is of course enormously positive news for the patients suffering from cancer.
If you want to invest in Arctic Aurora LifeScience – please contact one of our sales representatives or invest directly at Arctic Online here
If you want to read more about the Arctic Aurora LifeScience, please visit us as www.arctic.com/afm
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 AP Fonder, Ulrica Bjerke, and 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 s 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.