HFM Week: Former Discovery pro preps healthcare HF
Former Discovery pro preps healthcare HF
Posted By Michael Rodwell On October 19, 2020 @ 4:21 pm In News, US
An ex-Discovery Capital Management senior healthcare analyst is prepping a hedge fund focused on US healthcare stocks. Curtis Hogue plans to launch Dune Lake Capital in the first quarter next year.
Hogue is targeting between $50-150m for launch, according to a source. He had originally planned to begin trading in summer 2020 but fundraising was postponed due to the Covid-19 crisis. An incubator fund with internal capital will now launch in December or January.
Hogue was a senior analyst at Robert Citrone’s Discovery Capital Management for over seven years. At DCM he covered global healthcare stocks including US therapeutics, Japanese pharmaceuticals and European pharma & biotechnologies.
After DCM, Hogue spent a short stint at Citadel stock picking unit, Aptigon Capital, before it was shuttered in early 2019.
Dune Lake will adopt a low-net healthcare strategy initially focused on US equities. The portfolio will consist of between 80-100 names within the biotech, pharma and therapeutics sectors, according to sources.
HFM understands the firm will outsource COO/CFO responsibilities to Constellation and trading to Cowen. One unnamed prime broker has been selected and a second could be hired dependant on fundraising, according to a source. Centaur Fund Services will provide administrative duties.
There has been a spate of healthcare hedge fund launches throughout 2020. Last week, venture capital firm Decheng Capital registered  the Decheng Global Healthcare Fund while former GMT Capital and ThirdPoint analysts neared launch with two as-yet unnamed firms.
A number of asset management firms have been indicating their interest in healthcare strategies.
Recently Keebeck Wealth Management  and Boston Private Wealth both expressed a desire to increase exposure to the sector. “We have certainly been looking closely at equity long/short managers who can invest adequately in growth areas such as healthcare,” BPW’s chief investment officer told  HFM.