Our investment process is rigorous, disciplined and long-term.

Our Philosophy

Healthcare is a broad and diverse industry where market inefficiencies are prevalent due to the abundance of technical information and catalysts that provide considerable opportunities to generate alpha. Because of this, we believe sector specialization is an advantage when investing in healthcare.

To uncover these, we engage in a rigorous and highly disciplined investment process.

Our Investment Process

BFIN_icons_V2_SAMEHEIGHT_knowledge copy

1. Opportunity

Broadfin has the ability to invest across all market capitalizations in healthcare but tends to focus on small capitalization and middle capitalization companies – a universe of nearly 1000 companies. These smaller companies are often less-followed by other institutional investors and sell-side firms, and exhibit what we believe are higher levels of inefficiency, thereby offering alpha-generating potential.


2. Idea Generation

Our experience analyzing and investing in the sector, along with a deep network of healthcare industry and clinical community contacts enables us to identify new technologies and companies. This allows us to assess industry news and events quickly, realizing opportunities overlooked by the market.


3. Research

Broadfin prides itself on staying ahead of industry innovation. We seek to uncover the specific drivers of sector and company performance and understand the competitive landscape, changing regulatory frameworks and scientific developments. We conduct our own proprietary research through company management meetings, by attending medical conferences, by reading the scientific literature, and by leveraging our large rolodex of industry experts. We couple our research with deep financial analysis to ascertain the risk/reward of each opportunity.


4. Strategy

We are long-term, value-oriented investors that seek asymmetric returns.  We invest in companies with products that reduce healthcare costs and improve clinical outcomes for patients. We also believe in building core positions in our highest conviction names.


5. Risk Management

Capital protection is our primary focus and generating mid-teen percent net returns is our goal. We look specifically for companies with limited downside risk given their valuation and company fundamentals. We also have discipline in scaling in and out of positions as our price target is approached.


6. Handling Volatility

We continually evaluate each position and the overall portfolio, investing with a longer-term horizon. Given our strong core investment process we take advantage of sector volatility by investing during such market dislocations.


7. Focus on Long-Term Performance

We maintain constant focus on generating returns, rather than growing assets under management. Remaining nimble in our investment universe is key to our success.