In the lead up to this week’s The Insider: Meet the Fund Manager, Matt McNamara from Horizon 3 Healthcare sat down with Reach Markets to provide a bit of information about his investment strategy and the novel technologies that he is most interested in.

Matt has more than 30 years of experience in the healthcare industry, and built a stellar reputation in funds management after 14 years as a CIO of Bioscience Managers, where he managed 4 funds that totalled over $200 million AUM which produced above 20% IRR. 

Horizon 3 typically targets later stage healthcare investments that have a wealth of clinical data and either EMA or FDA approval. These opportunities can include drugs, diagnostics, devices and digital, and Matt runs a concentrated high conviction strategy with a small number of companies in his portfolio. He typically looks for companies with a few runs on the board that only have a couple of key milestones left to achieve before an exit opportunity arises.

It’s a stark contrast to what many ASX investors are used to dealing with in the healthcare sector, which is usually early stage biotechs battling through high risk phase one and two trials – but Matt believes he operates in a sweet spot that has clear potential for attractive returns but with a far lower risk profile.

After completing a molecular biology bachelor’s, Matt spent more than 11 years at Merck and Johnson and Johnson before moving over to the finance side of healthcare. It was here that he developed a clear interest in breakthrough technologies that spark paradigm shifts in their respective areas of healthcare, and he has a clear focus on these opportunities through Horizon 3. He is not interested in better mouse traps, only innovative novel technologies that are brand new to the industry.

The three companies that he will be presenting on Friday are exactly that, no two are alike. 

Functional mitral regurgitation (FMR) is typically associated with a poor prognosis in heart failure (HF) patients. The mitral valve’s dysfunction in HF, where it doesn’t close properly, results in a one year mortality rate of 20% and a five year mortality rate of 50%, while significantly reducing quality of life for survivors. 

In a revolutionary breakthrough that is hoped will become the standard of care for interventional cardiologists treating HF with FMR, a medical device has been invented that is able to be non-surgically inserted via catheter to the coronary sinus vein outside the heart, right next to the mitral valve. In doing so, the mitral valve is effectively reshaped in a manner that reduces valve leakage and subsequent regurgitation.

Results from multiple international clinical studies have clearly demonstrated that the therapy is effective in reducing the amount of mitral valve regurgitation and remodelling of the heart, which results in patients typically experiencing an improvement in HF symptoms and overall quality of life. In true Horizon 3 fashion, the product uses a unique and original mechanism of action to treat FMR, has met clear primary endpoints of reduced regurgitation as measured with echocardiography, is approved for use in the EU, and is seeking FDA approval via a 300 person study in the USA.

Join Matt McNamara this Friday, 27th October at 12pm (AEDT) on our The Insider: Meet the Fund Manager webcast to hear about his favourite stocks, investment strategy, market insights and more. There will also be an opportunity to ask questions during the session. To book yourself in, click here.

Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets’ position. Any advice is general advice and does not consider your personal circumstances, you should consider whether it is appropriate for you. The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss. 

Past performance is not a reliable indicator of future performance.