Krensavage Asset Management, LLC — 13F Portfolio

Krensavage Asset Management, LLC is a New York–based investment management firm specializing in healthcare and life sciences equities. The firm is led by founder and portfolio manager Michael H. Krensavage, who has built the platform around deep, fundamental research into pharmaceutical, biotechnology, medical device, and healthcare services companies. Krensavage Asset Management operates as a hedge fund manager, advising private pooled investment vehicles and other institutional accounts. The firm is registered with the U.S. Securities and Exchange Commission as an investment adviser and appears in the U.S. regulatory record as an institutional investment manager filing Form 13F under CIK 0001609251. Its 13F reports disclose the firm’s long positions in U.S.-listed equities and certain equity-like securities over which it exercises investment discretion above the SEC’s reporting threshold. These filings capture the long component of Krensavage’s U.S. equity book, but do not reveal short positions, derivatives, or non-U.S.-listed holdings that are often integral to a long/short healthcare mandate. Over time, the firm’s 13F submissions show a clear specialization in healthcare-related issuers, frequently with meaningful exposure to small- and mid-cap biotechnology and specialty pharmaceutical names, supplemented by positions in larger-cap healthcare companies and selected non-healthcare holdings when the opportunity set warrants. Organized into a continuous 13F History, these filings make it possible to reconstruct a notional U.S. long equity portfolio and study an inferred Historical Track Record for the visible sleeve of the strategy. Within an institutional 13F analytics environment, Krensavage’s public filings under CIK 0001609251 serve as the factual anchor. The platform can aggregate and normalize those disclosures, but the underlying identity, sector focus, and research-driven mandate are defined by the firm’s own regulatory filings and market activity.

Krensavage Asset Management pursues a concentrated, fundamentally driven, healthcare-focused equity strategy. The investment universe spans the full healthcare and life sciences spectrum—drug developers, specialty and generic pharmaceuticals, biotechnology companies, medical device manufacturers, diagnostics firms, healthcare services providers, and related subsectors. While the firm may opportunistically invest outside healthcare, its core competency and portfolio identity are firmly rooted in the healthcare ecosystem. The approach is value and catalyst-driven within that sector. The team seeks to identify mispriced securities where detailed bottom-up research reveals a disconnect between market expectations and the intrinsic value of the underlying business. In healthcare, this often centers on: - Rigorous analysis of clinical pipelines, trial design, and probability of success. - Assessment of regulatory pathways, including FDA and ex-U.S. approvals and labeling decisions. - Evaluation of intellectual property, patent duration, and competitive moats. - Scrutiny of management quality, capital allocation, and strategic positioning. - Understanding of reimbursement dynamics, payor behavior, and market access. Positions are typically built around clear fundamental and event-driven theses—such as upcoming clinical data readouts, regulatory decisions, commercial inflection points, restructuring, or potential strategic interest from larger industry players. The portfolio is usually composed of a relatively small number of high-conviction names, leading to a concentrated exposures profile that is characteristic of specialist healthcare hedge funds rather than diversified mutual funds. Krensavage’s style tends to be long-biased within healthcare, but the broader mandate includes the ability to short companies where fundamentals are deteriorating, valuations are stretched, or structural challenges are underappreciated. Only the long side of these views appears in 13F reports. Within the long book, the firm is willing to invest across the capitalization spectrum, from early commercial-stage biotech to established large-cap pharmaceutical and device companies, with a bias toward situations where extensive research can yield an analytical edge. Turnover in the 13F portfolio is generally moderate to high, reflecting the event-driven nature of many healthcare investments. The firm may hold core positions for multiple years when theses are playing out and valuations remain attractive, while trading more actively around binary events, evolving data, or changes in risk/reward. When Krensavage’s 13F filings are examined sequentially, allocators typically observe a combination of durable core holdings and more tactical positions keyed to specific catalysts. Using a Portfolio Simulator or Backtesting Service built on top of the firm’s 13F History, allocators can translate these disclosed holdings into a notional, long-only U.S. healthcare portfolio. This reconstructed portfolio can then be used to study the 13F-derived Historical Track Record of Krensavage’s long U.S. book, recognizing that it reflects only part of the overall long/short strategy and excludes non-U.S. names and derivatives.

Krensavage Asset Management, LLC is a specialized, research-intensive healthcare and life sciences investor headquartered in New York, led by founder and portfolio manager Michael H. Krensavage. The firm’s long/short, value- and catalyst-driven approach within healthcare has produced a 13F footprint characterized by concentrated positions in biotechnology, pharmaceuticals, medical devices, and healthcare services, occasionally complemented by opportunistic holdings outside the sector. By organizing the firm’s public filings under CIK 0001609251 into a coherent 13F History, allocators can reconstruct a notional portfolio of its disclosed long U.S. equity positions and examine both structural and outcome-oriented characteristics. Structurally, the evolution of the 13F Portfolio Composition reveals how Krensavage has allocated capital across healthcare subsectors, market caps, and individual names over time, and how concentrated the portfolio has been in its highest-conviction ideas. Outcome-wise, the inferred Historical Track Record—combined with diagnostics such as an indicative Sharpe Ratio and observed Max Drawdown Depth—provides a data-grounded view of how the visible long book has navigated different market and sector regimes. Because Form 13F captures only reportable long U.S. holdings, these analytics should be understood as a focused lens on the long side of Krensavage’s U.S. equity exposure, not a full representation of the firm’s global, long/short healthcare strategy. In practice, allocators will want to integrate this 13F-based historical replication and any Portfolio Simulator or Performance Backtests Online outputs with direct discussions about short-book construction, use of options, risk limits, and exposure management across clinical and regulatory cycles. The central question for due diligence is how Krensavage’s concentrated, catalyst-driven healthcare portfolio is likely to respond to future shifts in sector regulation, scientific innovation cycles, reimbursement trends, and macro conditions—and whether that regime sensitivity complements or amplifies the existing healthcare and equity exposures within an allocator’s broader portfolio.

Krensavage Asset Management’s sector-specialist, concentrated healthcare approach implies a distinct risk profile. The most important structural risks include: - Sector concentration: The portfolio is heavily skewed toward healthcare and life sciences, which means outcomes are tightly linked to the regulatory, scientific, and reimbursement environment for the sector. Broad healthcare drawdowns, sentiment shifts, or policy changes can materially affect the portfolio. - Idiosyncratic clinical and regulatory risk: Many biotechnology and specialty pharma positions are exposed to binary outcomes around clinical trial results, regulatory decisions, or competitive developments. Unexpected negative outcomes in one or more key holdings can produce sharp single-name drawdowns. - Small- and mid-cap liquidity risk: A meaningful portion of the opportunity set resides in less liquid, smaller capitalization equities. In stressed markets or stock-specific events, bid-ask spreads can widen and exit costs can increase. At the same time, the firm’s deep fundamental research aims to mitigate the risk of permanent capital impairment by focusing on asymmetric situations where upside potential is believed to outweigh downside under a range of scenarios. Diversification across healthcare subsectors—such as devices and services alongside therapeutics—can also provide some internal balance within the overall healthcare exposure. When Krensavage’s U.S. long equity sleeve is reconstructed from its 13F filings, an allocator can quantify these risks more precisely. Time series of the notional portfolio allow estimation of volatility relative to broad equity and healthcare benchmarks, as well as measurement of drawdowns during sector-specific and market-wide stress periods. Historical Max Drawdown Depth for the 13F-based replication is particularly informative, as it reflects the combined impact of sector concentration, single-name events, and broader market conditions on the disclosed portfolio. From this reconstructed capital path, risk-adjusted outcome metrics such as an indicative Sharpe Ratio can be derived, providing context on how the strategy’s higher intrinsic volatility has translated into longer-term compounding behavior within the visible long book. Overlaying these statistics with a detailed view of the evolving 13F Portfolio Composition—including the share of capital in top holdings, the balance between therapeutics and other healthcare subsectors, and any opportunistic non-healthcare positions—helps build a nuanced Volatility Profile for the portion of Krensavage’s activity that is transparent through Form 13F. It is important to emphasize that this analysis does not capture the contribution of short positions, options, or non-U.S. securities, which are often central risk-management tools in a healthcare-focused hedge fund structure.