New York’s Altium Capital Management, LP recently presented a growth report in which the fund announced impressive numbers reflecting last year’s activities. Specifically, Altium Growth Fund, LP, which is one of Altium Capital’s products, has recently reported year to date returns of 7.37%. This based on its performance over a period of five months, from its inception in June 2018 until October 2018.
Altium is a healthcare-oriented investment firm that focuses on investment opportunities relating to growth companies in the healthcare industry. In particular, Jacob Gottlieb, MD, CFA, PRM, a highly successful financial entrepreneur who is often referred to as the titan of healthcare investing, seeks out enterprises that offer meaningful health and medical treatment advances.
More specifically, Altium Growth Fund, LP primarily focuses on
- mid-cap equities
- small-cap equities
- equity-linked products
The fund, a Delaware limited partnership, primarily invests in the US and international healthcare sub-sectors such as biotech, services, major and specialty pharma, life science tools, medical technology and medical devices.
A New Approach to Healthcare Investment
The investment approach is based on a rigorous investment research process that is focused on capitalizing on pricing inefficiencies within the mid- and small-cap sectors. Equities and options with convertible bonds make up the fund’s financial instruments, while swaps and other derivatives are applied on a selective basis. Altium’s strategy is the identification of fundamentally driven, single-name ideas within the global healthcare realm.
The investment process is based on a meticulous bottom-up analysis for individual security selection. It is designed to generate returns on both long and short positions combined with intelligent exposure hedging, whereby each investment is judged individually based on merits and evaluated based on risk-reward and expected-value characteristics.
At the top of the investment process is idea generation. This is followed by stock selection and then portfolio construction. It all culminates in trade execution and an exit strategy, both of which are marked by actions such as minimization of thesis drift, realization of expected catalysts, technical analysis of supply/demand characteristics, constant re-evaluation as well as reviewing and resizing as appropriate.
The ultimate objective is to create attractive risk-adjusted returns with low correlation to traditional equity investments. The team is free to explore misunderstood issuers, particularly those undergoing transformations or advancements through new financings, catalysts in clinical and business development as well as improved communication with the investor community.
Experienced Management Yields Growth
The fund is managed by seasoned senior investment professionals with expertise in the healthcare sector, both within the healthcare industry as well as hedge funds. With a team of professionals who have a proven track record of success in investing within the healthcare industry, the management team is also the company’s advantage.
Altium Capital Management, LP, focuses on generating returns in a variety of equity-focused products within the healthcare industry. Its emphasis is on deep fundamental research with a focus on generating positive expected-value trades by analyzing asymmetric risk-reward opportunities.
Gottlieb founded the company in 2017 and is currently the Managing Partner as well as Chief Executive Officer. The rest of Altium Capital’s team is made up of experienced professionals who possess successful track records in several areas.
These include large hedge fund investment firms, small/specialty investments, deal structuring and the commercial healthcare industry. While the infrastructure entails modern, robust technology platforms that enable efficient and accurate operational performance, the team is committed to continuous optimization to meet future needs.
Some of Altium Capital’s recent investments include, Oramed Pharmaceuticals (ORMP) (5.61% stake), Amarin Corporation (AMRN) as well as Oragenics, all of which are in the health care sector. Oramed’s focus has been the design of an innovative oral treatment alternative for diabetes patients who are otherwise receiving injectable drugs, while Amarin’s focus revolves around developing drugs to improve cardiovascular health.
Lastly, the emphasis of Oragenics has been on novel antibiotics against infectious disease as well as on effective treatment development for oral mucositis via Replacement Therapy.
A New Venture for Jacob Gottlieb
Before starting Altium, Gottlieb founded Visium Asset Management, LLC in 2005 that peaked in 2016 with an $8 billion hedge fund and with over 200 employees in global offices in New York City, San Francisco and London. Prior to founding Visium, Gottlieb was a founding member at Balyasny Asset Management, L.P. (BAM), where he became a top earner and known for his large portfolio gains. Before his role at BAM, he was a successful investment portfolio manager at Merlin Financial in London, England.
His other engagements include having held the position of buy-side analyst at Sanford C. Bernstein & Co., LLC, where he covered global health care for two years. Gottlieb obtained his Chartered Financial Analyst (CFA) charter from the Association for Investment Management and Research (AIMR) in 2001 and his PRM designation from the Professional Risk Managers’ International Association in 2010. Gottlieb obtained his BA in Economics (magna cum laude) from Brown University and his MD from New York University Medical School. He then completed an internal medicine internship at St. Vincent’s Hospital in New York City, New York.
Mark Gottlieb was Partner and Chief Administrative Officer at Visium prior to his role at Altium. Just like Jacob, Mark was also a member of the BAM investment team where his primary focus revolved around negotiating private investments in public companies in development-stage healthcare. Mark’s career began in corporate finance investment banking at UBS. Mark obtained his BA from Vassar College in Economics and his MBA from Cornell University in Entrepreneurship & Venture Capital. He is also a CFA charter holder and a CAIA charter holder.
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