Medical School -> hedge fund
Hello. I have heard that there are some opportunities for people with MDs or healthcare research in hedge funds. For example, I have heard of pharmaceutical-focused hedge funds making bets on whether drugs will be approved by the FDA or not. Ergo, it might be useful for somebody on the team to have a pure healthcare background. Do these kind of roles exist?
Background: I have graduated med school and am finishing residency next year. I have no finance background. Thank you in advance!
Yes, they exist.
Thanks for your response. Could you provide more info or maybe point me in the direction of funds that are hiring these types of people ?
Orbimed, Perceptive, Logos Capital, Cormorant, Asymmetry
This list (some of them are private or cross-overs): https://axial.substack.com/p/the-superinvestors-of-life-sciences?s=r
Great question OP.
As an MD, how can you tell if a drug will be approved ?
Healthcare expertise is a sought-after trait at some funds but I don't think medical school provides you with the relevant background. Someone with an R&D background (generally a PhD, maybe MD/PhD, possibly with some postdocs) is far better prepared to analyze and understand drug studies, medical device research, etc. Someone who completed an MD/MBA program might have useful insights into healthcare services. An MD by itself isn't really all that relevant.
I dont think anaylizing healthcare companies or products will be an issue given their backgrounds, even non-medical can do that.
I think the issue is how can you tell if a drug will be approved ??
I have seen few attempts, one by MIT financial engineering lab trying to predict drug approval via machine learning. Another was pure talent like the big short guy Michael Burry !
Having a MD or PhD is relatively common in the world of life science investing. However, many firms typically want to see prior healthcare or finance experience as the dedicated healthcare funds typically already have a handful of tenured, in-house KOLs; your MD is great, but it’s nothing compared to the MIT professor that’s dedicated the last 20 years to gene editing. From your shoes with no finance background, you could consider first doing sell-side equity research where you can get your feet wet and then join an investment fund after.
Additionally, I’d be cognizant that having a MD or PhD doesn’t make you a better life science investor. The two healthcare funds I’m aware of that made money in this terrible biotech environment both are known for not giving any weighting to graduate degrees and in fact will look for candidates without one. I’ve also come across a handful of investors through group meetings that joined the industry right out of undergrad, and they’ve arguably been the smartest people in the room. So, just be sure to keep an open mind and focus on developing your own craft.
Hi there,
Can you share with us what are these 2 healthcare funds that you mentioned in your post. Thanks
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