Chicago hedge fund firm Citadel is known for buying and selling stocks, bonds and derivatives across public markets. But lately it’s been pumping millions of dollars into private biotech companies. The firm’s Surveyor Capital fund has invested about $150 million in 17 such companies, mainly in the biopharmaceutical field, since February 2018. That venture investing is a small portion of billionaire Ken Griffin’s $30 billion Citadel business, but it’s part of a striking and expanding departure from his 30-year focus on public markets. Placing capital with young biotech companies can be risky, but Surveyor has captured big gains in initial public offerings. Those types of returns have increasingly attracted investors to the biotech sector over the past decade, and that wave of interest is likely to keep climbing with the new hunt for coronavirus treatments.
Read the full article: $30B Hedge Fund’s Next Bet Is on Biopharmaceuticals //
Source: https://www.modernhealthcare.com/finance/30-billion-hedge-funds-next-bet-biopharmaceuticals