Asymmetry Capital Management


A LETTER FROM OUR FOUNDER


When I decided to launch Asymmetry, it was the culmination of a dream that brought me full circle to a family history of entrepreneurship and healthcare. My grandfather owned pharmacies in Brooklyn, NY, and my parents were entrepreneurs. My grandfather wasn't alive to see me accept my first job at Pfizer, a pharmaceutical company, but he would have been proud to know I had continued in the sector to which he dedicated his life. Having grown up watching my father and grandfather invest in the stock market, I developed a passion for investing alongside theirs, this ultimately led me to Wall Street as a healthcare analyst. I was fortunate to be able to integrate the two interests that have been a driving force in my life: healthcare and investing.

Scott Kay

I have always been competitive and drawn to complex problem solving. Healthcare investing allows me to exercise both of these traits. I wake up every day thankful I am able to do what I love on behalf of our investors, partners and the team we have assembled at Asymmetry.

Healthcare is unique among the sectors comprising the global economy. What other sector offers the opportunity to advance peoples well-being and happiness, fulfills a basic human need, comprises so many diverse sub-sectors and encompasses so much complexity? Many of the businesses we invest in save lives and make products that enhance day-to-day living. Businesses that do not fulfill their promises to patients, customers and shareholders are firms we bet against.

The success of Asymmetry rests on our ability to deliver, for our partners and investors, attractive investment returns over the long-term while effectively managing risk. Investment success is not easily measured month-to-month or even year-to-year as we operate in a dynamic and volatile industry. Recognizing that different views on valuation inevitability become reconciled over a longer horizon, and that in the short-term market pricing is often inefficient, led me to develop Asymmetry's founding investment principle and philosophy:

  • A structured, rigorous, and iterative process provides both a strong foundation upon which to build and a guiding light from which to navigate forward.
  • Company fundamentals must, over time, drive asset valuations.
  • Portfolio diversification can both enhance returns and mitigate risk.
  • Portfolio liquidity offers both a margin of safety if an exit strategy is necessary, as well as the opportunity to capitalize on positive fundamental developments.

Just like a successful athlete, investing success is about doing the work. There are no short cuts. It is a constant process and it can be grueling. But, I have found few other things as satisfying as identifying an idea, validating it through one's own efforts and then being objectively rewarded when others recognize the value of what you uncovered.

We have built an institutional asset management business that reflects the entrepreneurship, pride of ownership and high standard we hold as the sacred responsibility entrusted to us by our partners and investors. The concept of fiduciary responsibility is one we have always taken seriously and is an overarching principal in how we manage our business and investments. This is what guides us as a steward of our clients' capital. Thank you for your continued partnership and trust.

Respectfully,
Scott C. Kay, CIO and Founder

Scott Kay's Signature