PRINCETON, NJ / ACCESSWIRE / January 18, 2016 / Thessalus Capital Management, a student-run investment fund based in Princeton, NJ, beat the odds in 2015. In a year of flatline markets, with the S&P 500 returning 1.4% and the average Wall Street hedge fund posting -3%, Thessalus notched a +7% gain after incorporation in September.
Thessalus has $300,000 assets under management, backed by capital from its founders and private investors. It is run by college and high school students with investing acumen, hailing from elite schools such as Princeton, Yale, and Lawrenceville Preparatory School.
The firm is principally managed by three founders, Mitchell Ng, Simon Song, and Raj Bagaria. Its list of advisors includes Avinash Singh, William Kridel Jr., Dr. Bernard Lee, Dr. Han Liu, et. al., with diverse backgrounds ranging from former COO of Birlasoft, managing director of a healthcare investment bank, former Blackrock managing director, to mathematics professor in Princeton's ORFE department.
Thessalus's current strategy incorporates global macro and long-short equity hedging which are the backbone of any successful fund, along with focus on areas such as large market cap healthcare stocks/ETFs where partners feel they have an edge.
Ng, a premed at Princeton with investment banking experience, describes a recent position on Valeant Pharmaceuticals (VRX).
Following negative press over price-gouging and attacks by short-sellers, the formerly high-flying Valeant declined from a peak of 262 to a low of 70.
However, Ng, saw no rationality in the sell-off. "I am a Molecular Biology major at Princeton, and will go to medical school this year. I looked at fundamentals- Valeant's impressive portfolio of dermatologic drugs, US patient population reached, and no drugs with similar mechanisms. Potential revenue from dermatologics alone did not justify a price of 70."
Increasing its Valeant position, the stock rose over 60% in the next 3 weeks.
Ng's partner, Raj Bagaria, elaborates. "Our philosophy is having the right education or finding people with the right education to get the science first. 99% of Wall Street brokers with econ. degrees only see balance sheet, P/E, etc."
According to Ng, Thessalus's top priorities in 2016 include continuing to refine its investment thesis with financial engineering advisors from Princeton, attracting and keeping student talent from top 20 universities in the US, and eventually raising funds to take larger positions.
"It's all about track record," says Thessalus partner Simon Song. "The premise is working. Now the goal is demonstrating a verifiable track record."
In 2016, Thessalus will be a fund with young talent to watch.
About Thessalus Capital Management:
Thessalus Capital Management (TCM) is a student-run investment fund currently with $300K AUM. Its investment thesis primarily focuses on long positions in the healthcare, tech, and energy equity markets. Run by students from elite schools such Princeton, Yale, and Duke, TCM aims to recruit undergraduates with unique investment skills/perspectives, particularly with technical background in fields relevant to its investment thesis. TCM members work closely with industry advisors learning basics of investing (pitchdecks, comp sets, DCF valuation), and also with Princeton academic advisors applying more sophisticated quantitative methods of portfolio optimization. Thessalus hopes to continue using student talent from top colleges to beat the S&P 500. For more information, or to apply, visit www.thessaluscapital.com.
SOURCE: Thessalus Capital Management