DAFNA Capital Management’s predominant strategy involves making fundamental and event-driven long and short investments in publicly traded biotechnology and medical device companies.

Our investment strategies attempt to capitalize on our core expertise in the discovery, development, and clinical use of drugs and devices. This core expertise provides an opportunity to exploit market inefficiencies resulting from the complexity of these companies’ technologies and the clinical marketplace.

Our fundamental research is primarily performed by rigorously evaluating future outcomes of key events. Such significant events include clinical trial results, regulatory decisions, unexpected side effects, additional indications for a drug or device, market adoption, and strategic partnerships or joint ventures.

DAFNA Capital Management combines this fundamental analysis with significant attention to risk reduction. Risk reduction is achieved by a disciplined structured investment process. At the individual company level, risk reduction is achieved by rigorous and comprehensive data analysis and quantitative analytic tools. For each portfolio, DAFNA Capital Management invests in a substantial number of companies, and attempts to balance the long and short positions by market size, business model, and other financial and trading parameters. Matching of long and short positions occurs at the company and portfolio level, and significant attention is paid to the liquidity implications of each position. Each portfolio is reviewed daily by DAFNA Capital Management to confirm that its risk profile matches its investment objectives.