Former Regal Fund Managers to Launch New Healthcare Investment Fund

Two former portfolio managers from Regal Funds Management are set to establish a new long/short healthcare fund targeting companies in Australia and Asia. The fund, which has already secured over $70 million in backing from an overseas institutional investor, will focus on identifying top-performing and underperforming healthcare companies within these regions. 

Background of the Fund Managers 

The fund will be managed by Dr. Craig Collie and Dr. Madusha Dilshan Seneviratna, both of whom have backgrounds in medicine before transitioning to investment management. Dr. Collie, previously Regal’s healthcare portfolio manager, left the firm in April and has since been working on setting up the new fund. His co-manager, Dr. Seneviratna, is a former pediatrics doctor who previously worked at Westmead Children’s Hospital before entering the financial sector. 

New Fund Structure and Strategy 

The entity behind the new fund, Coronet Investments Pty Ltd, has been registered with the Australian Securities and Investments Commission (ASIC), and the company has secured an Australian Financial Services Licence (AFSL). This regulatory approval allows the fund to operate within the financial markets and manage investments on behalf of institutional and retail clients. 

The fund will employ a long/short strategy, which involves taking long positions in companies expected to perform well and short positions in those anticipated to underperform. This approach allows for flexibility and the potential to generate returns regardless of overall market conditions. 

Focus on Healthcare Sector 

The fund’s focus on the healthcare sector in Australia and Asia is a strategic choice given the region’s diverse and rapidly evolving healthcare landscape. Australia is home to a number of prominent pharmaceutical, biotechnology, and healthcare service companies, while Asia offers a vast and growing market with increasing demand for healthcare innovations and services. 

The fund will likely target a range of companies, from established players with strong market positions to emerging innovators in biotechnology and medical technology. By leveraging their medical expertise and investment experience, Dr. Collie and Dr. Seneviratna aim to identify companies that are well-positioned to capitalize on trends such as aging populations, rising healthcare expenditures, and advancements in medical technology. 

Investment Approach and Methodology 

Dr. Collie and Dr. Seneviratna’s background as medical professionals is expected to play a critical role in their investment approach. Their in-depth understanding of the healthcare sector will enable them to assess the scientific and commercial viability of healthcare products and services with a level of insight not typically found in the financial industry. 

The fund’s long/short strategy will involve rigorous research and analysis to identify potential investment opportunities. This may include evaluating clinical trial data, regulatory approvals, and market potential for new therapies and technologies. The ability to take short positions will also allow the fund to hedge against potential market downturns or specific company risks. 

Strategic Outlook and Market Context 

The launch of this new fund comes at a time when the global healthcare sector is undergoing significant transformation. Factors such as technological advancements, increased healthcare spending, and the impact of the COVID-19 pandemic have reshaped the industry, creating both challenges and opportunities for investors. 

In Australia, the healthcare sector has shown resilience and growth, supported by strong government investment in healthcare infrastructure and research. Meanwhile, in Asia, rising incomes and an aging population are driving demand for more sophisticated healthcare services and products. 

The new fund’s regional focus allows it to capture diverse opportunities across mature and emerging markets, positioning it to benefit from varying healthcare trends and economic conditions. 

Bottomline 

With over $70 million in initial funding and the expertise of two experienced portfolio managers, Coronet Investments is set to make a significant entry into the healthcare investment space. Dr. Craig Collie and Dr. Madusha Dilshan Seneviratna’s unique combination of medical and financial expertise positions them well to navigate the complexities of the healthcare sector and identify promising investment opportunities. 

As the fund prepares for its official launch, it will be closely watched by institutional and retail investors alike, eager to see how the team’s specialized knowledge translates into performance in the dynamic and evolving healthcare markets of Australia and Asia.