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This hedge fund crushed the competition in 2015
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A biotech-focused hedge fund has posted some astonishing performance numbers in what has been an underwhelming year for the average hedge fund.
Perceptive Life Sciences Offshore Fund, a $1.14 billion hedge fund that makes investments in biotech and pharmaceutical companies, delivered a 27.87% return through December 11, according to data from HSBC.
Perceptive ranked as one of the five best-performing hedge funds, according to the data.
Hedge funds have fallen 3.72% this year on average, according to data from Hedge Fund Research. There have been numerous highly publicized hedge fund closings and redemptions this year, and many of the industry's titans have stumbled.
Hedge funds focused on the biotech sector, in contrast, have had a better time of it. The average hedge fund that invests primarily in biotech stocks is up 9.64% this year, the HSBC report shows.
Key investments
Perceptive, which was founded in 1999 by Joseph Edelman, has not only had a strong year in 2015, but it has posted annualized gains of 19.37% since its inception, according to the HSBC data.
According to Perceptive's latest regulatory filing data, the fund's largest investments include Amicus Therapeutics (up 12.9% year-to-date), Neurocrine Biosciences (up 138% YTD), and Retrophin (up 61% YTD), the biotech company founded by Martin Shkreli in 2011 that is suing him on accusations of securities fraud.
(Thomson Reuters)
A sign at an AstraZeneca site in Macclesfield, England.
The fund also makes private investments. One of those investments resulted in a big payday earlier this month, the New York Post's Michelle Celarier reported. On December 17, AstraZeneca said it would pay $4 billion for a 55% stake in Acerta Pharma, a biotech startup that focuses on treating leukemia.
Perceptive held an 8% stake in Acerta. According to the Post, Perceptive made 20 times its initial stake, which it bought for $21.5 million.
We've reached out to the fund's investor relations for an update on performance.
Deep roots in biotech
Edelman's roots in biochemistry run deep. His father, Isidore "Izzy" Edelman, was a renowned scientist. Izzy, who died in 2004, was a professor emeritus of biochemistry and molecular biophysics at Columbia's College of Physicians and Surgeons, where he spent 26 years.
The younger Edelman began his career on Wall Street in 1987 as a biotechnology analyst at the brokerage firm Labe, Simpson & Company. In 1990 he moved to Prudential Securities as the senior biotech analyst, and he stayed there for the next four years.
In 1994 he transitioned to the buy side, joining Paramount Capital Asset Management, where he ran The Aries Funds until 1998.
Edelman graduated magna cum laude with a degree in psychology from the University of California at San Diego. He earned his MBA from New York University.
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