PAVADI®

 

Dear Investors and Friends:

We appreciate your ongoing support and interest in Pavadi Capital LLC ("Pavadi").  For over twenty-one years, we have been working and investing together across the large and growing healthcare sector.  Pavadi's strategic focus on value investing across healthcare was the culmination of efforts to identify a durable way to generate investment returns while managing risk.  The name Pavadi, a mnemonic, is a constant reminder of our commitment to the founding principles of Pavadi – patience, value and discipline – and their application to sound investing, decision-making, and overall value creation.  We continue to have the majority of our net worth invested in Pavadi, which ensures our interests are tightly aligned with those of our investors, several of whom have worked and invested with us for more than two decades.

 

Equally as important, in building Pavadi, we have leveraged our operational capabilities developed while managing a healthcare-focused private equity portfolio, and invested from the outset to construct enduring, institutional-quality operational infrastructure that can efficiently scale into significant capacity without modifying our investment processes.  This durable foundation and its scalability have the potential to generate attractive returns for our world-class institutional and private client investors.

 

We remain confident that our relentless pursuit of value investing across the healthcare sector will continue to generate attractive returns over time.  We thank you again for your time and consideration, and we stand at the ready to serve as an active fiduciary and steward of your capital.

 

 

Very truly yours,

 

 

 

Jeffrey S. Edelman           Zachary S. Sharon, M.D.

MANAGEMENT TEAM

 WORKING AND INVESTING TOGETHER SINCE 2001

OUR INVESTMENT STRATEGY

Pavadi Capital LLC manages investment funds focused exclusively on finding overlooked, deep value investment opportunities across the large and growing healthcare sector.

Pavadi’s founders have worked and invested together for over 21 years, including managing a healthcare-focused private equity portfolio

Disciplined and scalable process that invests in companies with attractive valuations, solid cash flows, strong balance sheets, and significant growth prospects.

Attractive returns, both absolute and risk-adjusted, with significant alpha generation, and lower beta and correlation relative to the broader U.S. equity market

Target portfolio of 25 or fewer highly liquid positions across market caps, with the majority of returns coming from mid-to-large cap companies

Founders have 50+ years of combined healthcare experience and the majority of their net worth invested in Pavadi, assuring a tight alignment of interests

Relative value metrics and fundamental analysis prioritizes a universe of 1250 U.S.-listed healthcare companies into a watch-list of 250 companies

Differentiated by its focus on value, Pavadi avoids many of the high growth, unprofitable, illiquid, or highly volatile companies that are common across healthcare

Risk management framework composed of strict liquidity parameters, concentration limits  and position performance assessment

WHAT WE BELIEVE

  • We believe our firm culture is our bedrock for growth and should overlap with our investors’ values and time horizon

 

  • We believe all investors should have an allocation to healthcare, an indispensable industry growing to $6 trillion and 20% of GDP

 

  • We believe that sustainable long-term out-performance and alpha generation are dependent on doing something different in a methodical, repeatable and scalable manner

 

  • We believe that a concentrated portfolio of profitable, publicly-traded healthcare companies can outperform

 

  • We believe in the value of risk management and seeking to avoid the pitfalls of behavioral investing

 

  • We believe that working with high-quality, world-class partners is important and have established relationships with key providers who have expertise in: accounting, tax, audit, fund administration, prime brokerage, asset custody, legal, compliance, IT, and marketing

WHY WE ARE DIFFERENT

  • BUSINESS SCALABILITY

    • We believe our proprietary investment processes and business practices are disciplined, durable and scalable

     

    • Proven institutional-quality operational infrastructure and fund management experience

  • TEAM EXPERIENCE

    • Majority of net worth invested in Pavadi assures a tight alignment of incentives

     

    • Investing together for 20+ years with 50+ years of combined healthcare expertise

  • VALUE FOCUS

    • Performance track record of attractive annualized returns with significant alpha, lower beta and lower correlation

     

    • Differentiated as an exclusively value, non-growth-focused, healthcare investment strategy

CONTACT

250 West 55th Street

17th Floor

New York, NY 10019

 

(212) 632-5410

Submitting Form...

The server encountered an error.

Form received.

“Pavadi®” and “patience • value • discipline®” are registered trademarks of Pavadi Capital LLC. © 2023 Pavadi Capital LLC. All rights reserved.

 TERMS OF USE

PAVADI®

 

 

 

 

 

 

 

 

 

  • Jeffrey S. Edelman

    Partner & Co-Founder

     

    JEFFREY S. EDELMAN

    30 years of experience as a manager, strategic advisor and investor in the healthcare industry

     

    Jeff is a Partner and Co-Founder of Pavadi Capital, where he leads the finance and operations functions of the firm, as well as co-leads investment strategy design and implementation. Prior to cofounding Pavadi Capital, Jeff was a Principal and the CFO at Symphony Capital LLC, which he co-founded in 2002 and during which he led finance and operations of Symphony’s healthcare-focused private equity fund. Prior to co-founding Symphony, Jeff was a Principal at Wilkerson Partners (2001-2002), Director of Corporate Strategy at SelfCare (1999-2000), and a management consultant with L.E.K. Consulting and McKinsey & Company (1996-1999). Jeff began his career as an investment banker in the healthcare group at Alex. Brown & Sons from 1992 to 1994. Jeff has more than 30 years of experience as a manager, strategic advisor and investor in the healthcare industry.

     

    Jeff received an M.B.A. in Healthcare and Strategic Management from The Wharton School of the University of Pennsylvania in 1996 and a B.A. in Economics with High Honors from Dartmouth College in 1992. From 2011 until 2021, Jeff served on the Advisory Council and Investment Committee of Montefiore Medical Center.

  • Zachary S. Sharon, M.D.

    Partner & Co-Founder

    ZACHARY S. SHARON, M.D.

    22 years of experience in the healthcare industry

     

    Zach is a Partner and Co-Founder of Pavadi Capital, where he leads portfolio management and modeling, as well as co-leads investment strategy design and implementation. Prior to co-founding Pavadi Capital, Zach was a Principal at Symphony Capital LLC, which he joined at its inception in 2002, including focusing on structuring and monetizing Symphony’s healthcare-focused private equity fund investments. Prior to Symphony Capital, Zach was an associate at Wilkerson Partners from 2001 to 2002, where he worked with emerging healthcare companies and investors. Prior to Wilkerson Partners, Zach was a surgery resident at Stanford University Medical Center from 2000 to 2001.

     

    Zach received his M.D. as a member of the Alpha Omega Alpha Honor Medical Society at Wayne State University School of Medicine, where he graduated with Highest Distinction in 2000, and his B.S. in Biology with Highest Distinction from the University of Michigan in 1996, where he was a junior inductee to Phi Beta Kappa and a James B. Angell Scholar.

WE DO NOT INVEST IN:

 

Hot stocks and speculative growth stories

 

Companies with:

  • High valuations
  • No revenue or earnings
  • Aggressive growth expectations
  • Novel technologies

 

Examples:

  • Biotech
  • Most large pharma
  • Innovative medical devices
  • Emerging healthcare IT
  • IPOs
  •  

PAVADI®