Medex Healthcare Absolute Return Fund

The Medex Healthcare Absolute Return Fund is a Cayman Domiciled, AIFMD compliant, actively managed equities long/short fund with a focus on the global Healthcare Sector. The fund's investment approach is based on a fundamental, bottom-up stock selection process, that seeks to identify idiosyncratic risk opportunities to deliver attractive risk adjusted returns through all market conditions.

Investment Objective

The fund's investment objective is to achieve absolute, double digit annual returns throughout all market conditions, with minimal correlation to markets. The manager seeks to achieve this objective by investing in a portfolio of long and short equity positions in companies in the global Healthcare sector where the fundamentals and prospects of the business are not reflected by its market valuation.

Key Aspects

  • The healthcare sector features compelling alpha opportunities due to the idiosyncratic nature of risk: fundamentals more often than not are stock rather than industry specific, which can create dispersion in returns and opportunities to exploit these
  • The strategy does not rely on a directional view of the market as it seeks returns from fundamentally driven dispersion, rather than overall sector returns which are highly correlated (80%) to inherently unpredictable broader markets
  • By keeping correlation and exposure low, the strategy seeks to provide a level of insurance against severe capital losses due to signficant market volatility, whilst better aligning investor and manager by discouraging inappropriate risk taking through significant directional bets.
  • Through its absolute return focus, the strategy can develop and invest in the highest conviction ideas - focus that would be lost if there was a benchmark
  • The strategy allows for larger concentration in names where this might be justified.