Senator Richard Blumenthal Places a Large Stake in Biotech

Richard Blumenthal, a senior United States Senator from Connecticut, recently purchased a stake in Commodore Capital Domestic LP, a hedge fund based out of New York that invests in biotechnology companies. 

Senator Blumenthal made a total of four buy trades on December 29, 2022, with two buy trades between $100,000 - $250,000, one buy trade of $50,000 to $100,000, and one final buy trade of $15,000 - $50,000. He appears to be well into the green on these purchases already, as the LP has appreciated year-to-date.

Commodore Capital is involved primarily in the healthcare sector, concentrating on “a science-driven approach to invest in innovative companies that are developing medical products to meaningfully improve patients' lives. The fund is designed to make long term investments in small-cap public and late-stage private biopharmaceutical companies,” according to their linkedin. 

Of course, while these trades may seem relatively large, in the context of the Senator’s net worth this may be not a significant percentage. In the past, the Democratic Senator is said to have had a net worth of over $100 million.

Still, it could be a vote of confidence for the biotech industry, which is coming off a few banner years of investments and innovation. As technology in the space evolves, there are likely to be several major discoveries leading to a large outperformance for some select companies. This seems like a way to utilize a speciality hedge fund manager to select the best opportunities with a higher return profile long-term.