BlackRock Fund, Biomedical Expertise Popular

Chidem Kurdas

Healthcare hedge funds have outperformed long/short equity so far this year. The sector remains popular with investors, in particular funds of funds, despite uncertainty created by the new healthcare law.  BlackRock Health Sciences is one of the sector funds seen as a reliable component for a diversified portfolio.

This fund was launched in 2006, drawing on the management team of BlackRock’s healthcare mutual fund, which had a highly-rated track record. It has a bottom-up strategy based on intensive company research. Though vulnerable to market fluctuations, the strategy has been a good bet over several years , says an investor.

Other fund businesses want to trade in this sector. They have been competing for traders with a biomedical background and established track record.

Barclay Hedge’s healthcare and biotechnology index is positive for September and year to date, compared to the general hedge fund index, down 2.25%. But most funds have not yet reported their performance. August was a bad month for healthcare and biotechnology, as it was for hedge funds at large.


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