DAFNA Capital Management, LLC

Overview

DAFNA Capital Management, LLC is a Los Angeles-based hedge fund specializing in managing long/short portfolios of predominantly publicly traded biotechnology and medical device companies. Founded in 1999, the firm has over 25 years of experience in funding the future of medicine and prudently managing the wealth entrusted by its investors. The firm's principal mission is capital preservation and strong annualized returns over longer time periods with minimum risk. Investment returns are generated by recognizing the responsibility to improve human health through the efficient allocation of capital to the most promising preventive, diagnostic, and therapeutic interventions. The firm's investment strategy employs fundamental analysis and event-driven approaches to make long and short investments in publicly traded biotechnology and medical device companies. This strategy capitalizes on DAFNA's core expertise in the discovery, development, and clinical use of drugs and devices, exploiting market inefficiencies resulting from the complexity of these companies' technologies and the clinical marketplace. The firm focuses predominantly on preventive, diagnostic, and therapeutic interventions that are at the frontiers of science and are leading the effort to improve clinical care in their specific niche of medicine. The majority of investments are in small/mid capitalization companies with a focused pipeline or business, based in the United States or other developed countries. DAFNA Capital Management has built a business with a long-standing track record, generating significant alpha without leverage and with high liquidity. The management team has the majority of their wealth invested alongside investors, ensuring alignment of interests. The firm boasts extensive scientific and financial expertise in the life science industry and solid operations, being SEC registered since 2003 with reputable top-tier auditors and other service providers. The team comprises professionals such as Dr. Nathan Fischel, M.D., CFA, Chief Executive Officer & Founder; Dr. Fariba Ghodsian, D.Phil., MBA, Chief Investment Officer; and David Fischel, CPA, CFA, CAIA, MBA, Principal. DAFNA Capital Management's disciplined structured investment process emphasizes risk reduction at both the individual company and portfolio levels. At the individual company level, risk reduction is achieved through rigorous and comprehensive data analysis and quantitative analytic tools. At the portfolio level, the firm invests in a substantial number of companies, diversifies according to a matrix of parameters, avoids leverage, and attempts to balance the long and short positions according to various market size, business model, and other financial and trading parameters. Significant attention is paid to the liquidity implications of each position, with each portfolio reviewed daily to confirm that its risk profile matches its investment objectives.