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With the proliferation of hedge funds in recent times, how
do managers identify potential investment opportunities and
keep a competitive edge? The Abernathy Group has developed
a unique Collaborative Investing® model which
gives them better insight of their target sectors. Eurekahedge
caught up with Neil Baim, Managing Director, and asked some
questions.
- Who are The Abernathy Group?
The Abernathy Group, a division of Abernathy Financial Services,
is the world's premier Registered Investment Advisor (RIA)
for medical and information technology professionals. The
Abernathy Group's investment partnership funds utilise a
unique value investment discipline for superior long-term
performance. Collaborative Investing® is our proprietary
concept where the clients' hands-on knowledge of medical
therapies and technologies are layered onto the research
and financial expertise of the firm. Our portfolio managers
invest side-by-side with the clients.
- Can you describe the Collaborative Investing®
model?
The Abernathy Group invests capital using Collaborative
Investing®, leveraging the knowledge of
its investment partners who are experts in the medical
and information technology sectors. The Abernathy Group
clients not only invest alongside the firm's principals
– they are a critical source of information. Using
this method, the firm is able to cultivate information
regarding prospective investment opportunities that other
money management firms do not have readily accessible.
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How long have this model been in use?
Established in 1989 by Principal Steven Abernathy, the
Collaborative Investing® model has outperformed related
indices and many other top money managers for more than
a decade. The firm has received recognition from Barron's
and Nelson's as having one of the longest and strongest
track records in the industry.
- How do you identify your specialist investment partners?
At Abernathy, we look for investment partners who understand
the importance of combining both the use of a value investment
model as a foundation for portfolio building with the
advantages of making decisions with an informational edge.
As the world becomes increasingly complex, and quality
business decisions require more detailed foundations of
knowledge, we realise that we must be more effective in
leveraging the intellectual capital of our Investor Partners.
To maintain our position as the world's premier medical
and information technology investment advisor and further
enhance our knowledge base, we have medical and information
technology advisory boards that focus on areas where there
is tremendous growth potential.
We currently have two advisory boards focused on leading
areas of healthcare: Cardiology and Ophthalmology. Our
goal is to populate our advisory boards with the industry's
leading practitioners, researchers and thought leaders.
The boards are a powerhouse of information, providing
incredible insight into investment opportunities in the
medical and information technology arenas. By harnessing
the intellectual capital of the best and the brightest,
both Investor Partner and non-Investor Partner, we will
achieve a level of understanding unparalleled in our industry.
Our investment partners are quite loyal and quite satisfied
with the stellar long-term performance of the fund and
are usually with us for the long run. We look for investors
who have a long-term time horizon and are looking for
an investment they can understand.
- Your fund is currently invested primarily in US companies.
Are there any plans to invest elsewhere?
The fund invests in US companies. Many of the companies
we invest in are global in scope, but primarily US based.
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What is your view on the technology industry now
that the "bubble" has burst? What are your long-
term views on the technology and healthcare industries
outside of the US?
We believe that both healthcare and technology remain
the best places to find opportunities for the long term,
and have always had a focus in those areas. We believe
that these areas will be the fastest growing both inside
and outside the US given demographics and the rapidly
advancing world we live in today. Despite the bubble bursting
in the tech sector, we still see technology as a great
place to find among the best opportunities in the long
term.
- How long is the decision making process and how long
do you usually hold your positions?
The decision making process clearly depends on the information
available and the analysis by our team. We communicate
with our partners often, keeping them abreast of what
is happening and why. Our buy/sell discipline is quite
specific and unique, so the time frame of our holdings
depends specifically on our outlook for the individual
company.
Contact Details
Neil Baim
The Abernathy Group
1 212 293 3462 / 800 292 6387
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