Yale's Endowment, Tisch, Invests In This Biotech Hedge Fund‍

Baker Brothers Last quarter, Advisors, a covert hedge fund that has Yale University's endowment and the Tisch family among its investors, kept onto many of its preferred biotech stocks.

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Brothers Julian and Felix Baker established the hedge fund in New York in 2000. Despite its lack of popularity, its portfolio has increased to rank as the 15th-largest among U.S. hedge funds through 2022, according to Trade Algo.

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The founders of the hedge fund, who are now in their 50s, capitalize on their immunology-related academic backgrounds and ride the sector's recent decade of spectacular expansion by specializing in biotech investing.

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Early in their careers, the brothers attracted some of the most well-known investors in the United States as clients. In 1994, they began overseeing the Tisch family's investments in the healthcare sector. From at least 2009, Yale's philanthropic foundation has invested in 667 LP, a Baker Bros. vehicle.

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Despite the fund's prestigious clients and outstanding performance, Baker Bros. has remained unnoticed. The brothers have never spoken to the media and their investing firm doesn't even have a website. According to Forbes, Julian Baker now has a net worth of $2.6 billion.

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Baker Brothers According to a recent regulatory filing, Advisers manages a heath care-only hedge fund with 115 stock holdings as of the end of 2022. Many of its picks in the biotech sector have generated enormous profits, and its portfolio has a relatively low turnover rate.

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With a wager worth almost $6 billion at the end of the fourth quarter, cancer therapy maker Seagen continued to be the hedge fund's largest investment, said the filing.

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Since they initially acquired it in the early 2000s, Seagen has been one of Baker's most profitable ventures. Over the past ten years, the share price has increased by almost 500%. However, it decreased by around 17% in 2017 as the market as a whole collapsed.

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Their second-largest stake, Incyte, a multinational biopharmaceutical business, had a market value of $2.9 billion at the end of the fourth quarter. As the stock increased by more than fourfold, the brothers have controlled this business for at least ten years. With a gain of more than 9%, the name outpaced the S&P 500 in 2017.

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In addition, the brothers were early backers of Chinese-American pharmaceutical company BeiGene, which at the end of December was the fund's third-largest investment. In 2019, Amgen acquired a small share in the business, which caused the stock to soar sharply. Since its U.S. IPO, the company's ADRs have increased by more than 700%. IPO in 2016.

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According to the statement, the hedge fund slightly raised its position to Rhythm Pharmaceuticals and Madrigal Pharmaceuticals last quarter.