BHIG’s Investment Strategy

The healthcare sector promises tremendous innovation that will yield life-changing therapeutics for a variety of diseases, industry-altering technology advancements, and massive service networks. As the pace of change continues to accelerate, there is strong potential for above-average returns. While BHIG recognizes that healthcare is a particularly volatile industry with challenging investing dynamics, we pursue a principled investment strategy and leverage the strong backgrounds of our members to achieve superior returns.

Core Principles:

QUALITY SCIENCE

We look for assets with compelling efficacy and favorable tolerability. We pursue a rigorous due diligence process to evaluate the strength of the clinical data with respect to the competitive landscape and the market's expectations to identify assets with leadership potential in their given therapeutic area. Our research analysts peruse databases and publications to identify uniquely innovative and effective therapeutics; this enables BHIG to source companies from a bottom-up approach.

TIMING

We monitor upcoming catalysts in relation to the company's stock price to evaluate the appropriate timing for an investment. Relevant inflection points such as data releases, earnings reports and healthcare conferences can have a significant impact on the stock price and are closely monitored. While we are a long-only investment fund, we consider important strategic and financial factors to develop a thesis about our investment horizon and the proper time to enter.

FINANCIALLY VIABLE

Given many companies in the healthcare sector are pre-commercial or have negative earnings, revenue projections tend to be one of the primary financial indicators. BHIG identifies companies with favorable revenue growth and projected blockbuster drugs. While some companies in our portfolio are pre-commercial and have not yet generated revenue, we also invest in more mature healthcare companies with stable financials. Important metrics we value are healthy revenue growth, high earnings margins, favorable competitive dynamics, and patent protection.

DIVERSIFICATION

We seek to manage a diversified, balanced portfolio comprised of stocks across the healthcare sector to mitigate risk and yield stable returns. Our portfolio is comprised of companies of varying market caps and volatilities. By diversifying our holdings across different therapeutic areas, BHIG can avoid overexposure to any subsector and weather potential bear markets.