View more on these topics

Sagitta produces cure for a hedge headache

Sagitta Asset Management has come up with an aspirin for the hedge fund market with the introduction of the salix fund.

Salix, which is named after the willow tree that provides the chemical for aspirin, is a hedge fund aimed at the high-net-worth investor who is looking for growth.

The fund will invest in different areas of the healthcare sector, including pharmaceuticals, care homes, biotechnology, medical instruments, hospitals and drug delivery, where a drug is changed from a liquid form into a powder or pill form. It will be run by either going long or going short on companies in these areas, depending on what is happening in the stockmarkets and what is affecting the healthcare sector.

Most of these companies will be based in America, as this is the leading area for biotechnology and pharmaceuticals at the moment. Some of the companies it will invest in will be Cambridge Antibodies, Novoste, which makes medical devices for the treatment of arteries and Scios, which has just developed a drug to treat heart failure.

The management team behind Salix are June Scott and Eduardo Tomacelli. Scott currently manages the Sagitta healthcare fund, which is an offshore unit trust domiciled in Dublin. She joined Sagitta in January 2001, having previously worked for Foreign & Colonial for six years. Tomacelli manages the Sagitta mariner hedge fund and joined the company in 1998.

Hedge funds are high-risk investments as they attempt to guess what is going on in the market and react to it. However, healthcare companies do have a degree of financial stability behind them which reduces the risk, as they need capital to develop drugs and market treatments.

According to Standard & Poor’s the Sagitta healthcare fund is ranked 3 out of 54 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over six months to September 10, 2001.

Recommended

Only 36% pass first half-credit K10

Only 36 per cent of the 635 advisers who took the first sitting of the Chartered Insurance Institute&#39s new K10 paper covering retirement options passed the half-credit qualification. The CII is disappointed at the low pass rate but says it illustrates the standard has not been watered down by creating half-credits at an AFPC level.

The Mortgage Operation – Fee Assisted Remortgage

Tuesday, 18 September 2001.Discounted term: 30 months.Discount: 1.9 per cent.Payable rate: 4.85 per cent.Minimum loan: £25,000.Maximum loan: Up to 95 per cent of valuation subject to a maximum of £150,000, up to 90 per cent subject to a maximum of £500,000, up to 85 per cent subject to a maximum of £1.7m.Income multiples: 3.25 times […]

Hargreaves tells investors to sell after US terror attacks

Hargreaves Lansdown is advising investors to increase liquidity in their portfolios following the attacks on the US last week.In a letter to clients, chief executive Peter Hargreaves predicts that a US recession is now almost certain, and advises clients to sell off poor performing investments to protect against any further market falls.Hargreaves says: “Today, I […]

Bond offers four strategies

Friends Provident is introducing a new lump-sum savings vehicle designed to provide investors with flexibility and choice.The investment portfolio bond is offering an extra allocation of up to 2.25 per cent on the sum invested during the offer period up to November 9. Standard allocation is 100 per cent.The bond enables the investor to select […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment