Private health science startup investor Lumira is setting up a hedge fund to bet on public copies it regards as having been oversold during the sector's troubled past year, according to a report by The Globe & Mail.

Private health science startup investor Lumira is setting up a hedge fund to bet on public companies it regards as having been oversold during the sector's troubled past year, according to a report by The Globe & Mail.

Toronto-based Lumira Ventures Opportunity Fund 1, will operate along the lines of vehicles established by other established US biotech investors – including OrbiMed Advisors LLC, HIG Capital and Baker Brothers Advisors – and back both public and private companies. Biotech equities analyst David Novak, previously managing director with Raymond James in Toronto, has been recruited to manage the new hedge fund.

Lumira Ventures Opportunity Fund 1, will focus on investments in established biotherapeutics and medical technology companies it believes will increase in value but will also allocate about 10 per cent of investment funds to take short positions as well.