Preparing for Transition from Life Sciences PE to Long/Short Hedge Fund (edited for specificity)
Hey all,
I’m currently a 2nd-year associate on a life sciences royalty team in private equity. I have a science undergraduate degree, followed by an MBA and CFA. I've spent a few years in banking, both full-time and through internships, and I'm quite confident with my modeling skills.
Right now, I do enjoy my role, especially attending healthcare conferences and conducting scientific and financial due diligence. My focus is mainly on commercialized assets and a few pre-approval projects, with analysis often taking several weeks. However, I'm looking for something new and more fast-paced with higher earning potential, so I'm considering transitioning to a life sciences long/short hedge fund. I understand the risks involved but am excited about the challenge. I've had conversations with a few recruiters and members of these firms, and they always probe my interest in transitioning to their L/S firm. I want to make sure I'm prepared since I know that just because I've done well in the royalty side, it doesn't mean the L/S side will be the same.
I know hedge funds require more rapid idea generation and analysis for every meeting, which is quite different from the more extended analysis cycle I'm used to.
Note: I adjusted the questions to be more specific as the ones I previously had were a bit too generic and didn't convey what I wanted
Questions:
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How does the clinical analysis done at an L/S fund vary from that of a PE fund? With quicker timelines, do you go as deep into the fundamental models? Do you still talk to as many KOLs and physicians in the space?
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With event-driven strategies, is the focus more on the likelihood of approval of a drug and PDUFA timelines as opposed to whether it will be successful commercially and future products in the pipeline that could be competitors 2-3 years down the road?
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What should I be reading, and how, if at all, should I be adjusting my learning and focus to prepare? What would be the biggest shift from moving from royalty investing in commercialized and some pre-approval high-conviction assets to an L/S fund focusing on event-driven strategies?
Any advice or insights would be greatly appreciated!
Thanks!
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