Our Investment Process
At the AI Biotech Fund, we follow a systematic, data-driven approach to identify and capitalize on high-potential investment opportunities in the biotech sector. By combining advanced AI insights, rigorous analysis, and expert validation, we ensure every decision is guided by precision and discipline.
Step-by-Step Investment Process
Step 1:
Data Collection
We collect vast amounts of data on clinical trial inflection points, including announcements related to trial outcomes, partnerships, and special designations. Leveraging Large Language Models (LLMs), we process and analyse this information alongside stock price reactions for hundreds of biotechs. This foundational dataset forms the backbone of our investment model.
Step 2:
Model Recommendations
Our proprietary model evaluates company-specific and market variables alongside TrialKey’s predictive analysis. It identifies trials with a high probability of success—or failure—that are expected to lead to significant stock price movements. These recommendations guide the initial focus of our research.
Step 3:
Asset and Trial Analysis
Once the model highlights a potential opportunity, we perform a deep dive into the specific asset and its associated trial:
- Validate TrialKey’s analysis to ensure all critical trial factors have been considered.
- Confirm the accuracy of reported protocol values and assess if they reflect the most up-to-date data.
- Analyze market fit for the asset and compare it to competing trials and approved therapies to evaluate its competitive positioning.
Step 4:
Company Analysis
Beyond the asset, we conduct traditional due diligence on the company, including:
- Financial health and stability.
- Management team’s expertise and track record.
- Broader organisational capabilities and strategy.
Step 5:
Expert Validation
The Investment Committee reviews the model’s recommendations alongside the findings from our human analysis. This collaborative step ensures a balanced decision-making process that integrates both AI-driven insights and industry expertise.
Step 6:
Execution
We determine position sizing, entry, and exit points guided by the model’s recommendations. By incorporating betting theory and optimisation techniques, we strategically manage position sizes to maximize potential returns while maintaining a disciplined risk approach.
Why Our Process Stands Out
Data-Driven Insights
Advanced AI and TrialKey analytics
guide every decision.
Targeted Precision
Focused on pivotal moments in clinical trials to optimize outcomes.
Rigorous Validation
Human expertise ensures the reliability of model recommendations.
Comprehensive Analysis
From market trends to company fundamentals, no detail is overlooked.
Learn More
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Memorandum or schedule a call with our team today.
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