In July 2014, the Company adjusted its operational arrangements to ensure compliance with the Alternative Investment Fund Managers Directive, (‘AIFMD’). Frostrow Capital was appointed as the designated Alternative Investment Fund Manager for the Company. Under a portfolio management agreement with Frostrow Capital, OrbiMed was appointed to manage the Company’s portfolio of investments. These arrangements were put in place to ensure that the relationship between the Company, OrbiMed and Frostrow Capital LLP is compliant with the requirements of AIFMD.
OrbiMed Capital LLC
OrbiMed is owned by six principals, including Samuel D. Isaly, who between them have many years experience of valuing companies in the pharmaceutical, biotechnology and healthcare sectors.
The OrbiMed Public Equity Investment Team continues to expand. Led by founding partner, Samuel D. Isaly, now over 80 investment professionals cover all aspects of research, trading, finance, and compliance. This includes over 20 degree holders with MD and/or PhD credentials, healthcare industry veterans, and finance professionals with over 20 years of experience.
The firm has a global investment horizon and the OrbiMed footprint now spans three continents with offices in New York, San Francisco, Herzliya, Shanghai, and Mumbai.
Investment Strategy and Process
The Team works constantly to identify sources of alpha generation with a focus on fundamental research. In healthcare, there are many primary sources of alpha generation, especially in therapeutics. Clinical events such as the publication of new clinical trial data is a prominent example and historically has been the largest source of share price volatility. Regulatory events, such as new drug approvals by US, European or Japanese regulatory authorities are also stock moving events. Subsequent new product launches are carefully tracked and forecasted. Other sources include legal events and, of course, M&A activity.
The Team has a global focus with a universe of coverage that covers the entire spectrum of companies, from early stage companies with pre-clinical assets to full integrated biopharmaceutical companies. The universe of actively covered companies is approaching 1,000.
OrbiMed emphasises investments in companies with underappreciated products in the pipeline, high quality management teams and adequate financial resources. A disciplined portfolio construction process is utilised to ensure the portfolio is focused on high conviction positions. Finally, the portfolio is subject to rigorous risk management process to moderate portfolio volatility.
Samuel D. Isaly
Sam is a founder and the Managing Partner of OrbiMed Advisors. He is one of the world’s most recognised healthcare fund managers and has been active in global healthcare investing and analysis since 1968 when he joined Chase Manhattan Bank in New York. During his career, Sam has been a pharmaceutical analyst with Chase Manhattan Bank, Merrill Lynch, Legg Mason, SoGen Swiss International, Gramercy Associates and SG Warburg. Sam launched OrbiMed’s asset management business in 1989. He has a BA in Economics from Princeton University and an MSc (Econ.) from the London School of Economics.
For more information on OrbiMed, please see their website: www.orbimed.com