Hedge Funds

NEPC finds potential in healthcare hedge funds


Investment consultant NEPC is recommending that clients with hedge fund investment programmes allocate a portion of their long/short equity exposure to healthcare managers.

The focus should be on managers that have experience investing in this space through multiple market cycles, and the requisite scientific and medical experience to source and select long and short opportunities. This specialisation creates a barrier to entry that means a limited number of talented portfolio managers and analysts with the necessary expertise and creates inefficiencies in the market and provides opportunities to generate alpha, according to NEPC research specialists.

Perhaps more importantly, demographics