A Nobel Prize-winningpedigree hasn’t show much of a correlation with successful hedge-fund management; just ask the people who bailed out and lost their shirts on Long-Term Capital Management. But maybe that just applies to dismal "scientists" and the Nobel Prize in economics, which isn’t a real Nobel Prize anyway, because there’s a hedge fund in Sweden investing in healthcare based on what the people who choose Nobelists in medicine think, and so far, it’s working out much better: A 21% annualized return since 2009.
“We make money, sooner or later, on most of the recommendations from the Scientific Advisory Board,” Rhenman, chief investment officer at Rhenman & Partners Asset Management AB, said in a phone interview on Friday. “The advice is most important within biotech and pharma but medtech is getting more important for the scientific board.”
The Stockholm-based fund meets with an advisory board of five medical experts once a quarter which includes Tomas Olsson, a professor in neurology and a member of the Nobel Assembly at Karolinska Institutet, which awards the Nobel Prize in Physiology or Medicine. Rhenman & Partners’ chairman, Hans Wigzell, is a professor in immunology and the former vice chancellor at Karolinska.
Of course, there are signs that even the medical experts may be fallible.
After posting a loss for the first time in 2016 of 12 percent, the fund has rallied 17 percent through February….