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East Rocky Health Sciences Strategy

A long short Health Sciences strategy focused on companies developing breakthrough medicines
  • Return since inception*
    40.6% p.a.
  • Typically 50–70 long and short positions
  • Long short health sciences
The East Rocky Health Sciences Strategy seeks attractive long-term returns by applying deep scientific and clinical research to identify mispriced opportunities, principally in oncology and neurodegenerative diseases, where East Rocky’s assessment differs from prevailing market expectations.

Founder and Portfolio Manager

  • Tom-Tang-Head-Shot-East-Rock-LR

    Dr Tom Tang

    Founder and Portfolio Manager

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Strategy overview

  • Strategy inception date

    31 July 2022

  • Investment approach

    To use deep, science-based research to identify mispriced health sciences and biotechnology companies developing treatments with attractive clinical and commercial potential, principally in oncology and neurodegenerative diseases, with opportunistic investments in other therapeutic areas.

  • Investment objective

    The objective of the Fund is to maximise capital appreciation through trading public securities in the health care sector

  • Return objective

    No defined return objective

  • Investment strategy and investments held

    To identify Health Sciences companies where market expectations differ from the Portfolio Manager’s assessment of clinical outcomes, commercial potential and development risk, with a particular focus on oncology and neurodegenerative diseases

  • Geography

    U.S.-listed companies, including American depositary receipts (ADRs) of global companies

  • Benchmark

    50% SPDR S&P Biotech ETF (XBI) / 50% iShares Biotechnology ETF (IBB), rebalanced monthly and calculated on a total return basis in USD

  • Timeframe

    5+ years

  • Holdings

    Typically 50–70 positions across longs and shorts, with a maximum of 100

  • Position sizes

    • Long: Typically 3–8%
    • Short: Typically 1–3%

  • Net/gross exposure

    • Maximum net exposure: 1.0x
    • Maximum gross exposure: 2.0x
    • Typical net long: ~70%
    • Typical gross: ~150–200%

Investment Philosophy

We believe deep scientific and clinical research can identify mispricing in Health Sciences companies. Our philosophy is underpinned by three core beliefs:

  1. Deep understanding of disease biology, therapeutic mechanisms and clinical evidence can reveal opportunities the market has mispriced
  2. We assess each therapy’s scientific potential alongside its addressable market, commercial opportunity and valuation
  3. Independent research helps us identify non-consensus opportunities where our assessment differs from market expectations

Investment Process

Our investment process combines deep scientific and clinical research with fundamental company analysis to identify mispriced Health Sciences companies. We assess the underlying science, addressable market and investment potential, with a particular focus on opportunities where our assessment differs from prevailing market expectations.

Each investment is supported by analysis of disease biology, therapeutic mechanisms, clinical evidence, commercial potential and valuation. The process is iterative, with new scientific evidence, clinical data and company developments continually incorporated into the investment thesis.

Portfolio Construction

The East Rocky Health Sciences Strategy typically holds a diversified portfolio of 50–70 long and short positions. Position sizing reflects conviction, expected return potential, downside risk and liquidity, with the portfolio centred on the Strategy’s highest-conviction investment ideas.

A distinguishing feature of the Strategy is the active management of market exposure. Gross and net exposure are adjusted to reflect the available opportunity set, market conditions and sector-specific risks, with the Strategy typically maintaining a long bias.

Risk Management

Risk management is integrated throughout the investment process. Investment theses are continually reassessed as new scientific evidence, clinical data and company developments emerge, with positions reduced or exited where the underlying thesis has materially weakened or more attractive opportunities are identified.

Strategy performance

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How to invest

There is currently one way to invest in the East Rocky Health Sciences Strategy

  • East Rocky Health Sciences Fund – Monthly Class
    Unlisted Managed Fund with monthly liquidity
    Learn more

Please contact us for further assistance.

Net performance as at 30 September 2026, net of fees. Past performance is not indicative of future returns. Returns based on the East Rocky Capital LP which incepted on 31 July 2022.