top of page

A Different Way to Invest in Healthcare with Jeff Edelman and Zach Sharon of Pavadi Capital

  • Writer: PrimeAlpha Thought Leadership
    PrimeAlpha Thought Leadership
  • Apr 14, 2022
  • 2 min read

Updated: May 21

Jeff Edelman and Zach Sharon are the co-founders of Pavadi Capital, a healthcare-focused investment firm. “We first began working together at a boutique healthcare consulting firm. And then, in 2002, along with four partners, we launched Symphony, a healthcare private equity firm responsible for deploying millions into highly structured investments in the biotech industry. In the years following the 2008 financial crisis, the two of us took on primary responsibility for monetizing and winding down the remaining Symphony investments and entities. After that, we began strategizing on what we wanted to do going forward. Two things were clear, we wanted to continue working together and stay in the healthcare industry.



As we thought about healthcare investing, we saw that most healthcare specialists are crowded into unprofitable development-stage biotech companies that tend to have frequent binary events tied to outcomes of clinical trials and regulatory decisions. They also have higher volatility, beta, deeper drawdowns, and less liquidity. This concentration of most healthcare specialists drove us to create Pavadi Capital.


Pavadi offers investors a different way to allocate capital across the breadth of the industry in a manner that is driven by investing in fundamentally sound companies with strong operating performance and compelling prospects for future growth. We invest in healthcare, public equities, and profitable companies. Our strategy provides investors with actively managed exposure to the healthcare sector and ideally generates the higher alpha and quantifiable differentiation that should come with such an actively managed strategy. We believe that this differentiated approach has us well-positioned for sustained success.”


Tailor Ridge Capital Management

Zachary Sharon, Partner

zach@pavadi.com

(212) 632-5411


Pavadi identifies contrarian, value-oriented investments across healthcare. Its concentrated, long-only portfolio is comprised exclusively of profitable companies (no biotech). Fundamentals and valuation drive portfolio construction. Founders have worked together for 20+ years. $133 mm AUM. SEC-registered. Differentiated from the largest broad market and healthcare indices (lower correlation, higher tracking error, lower beta, meaningful alpha). Pavadi is a mnemonic of the firm’s guiding principles - patience, value, and discipline.



Welcome to PrimeAlpha's interview series, where we will share insights from industry practitioners discussing their journey and their discoveries.


Check us out on these platforms




Access PrimeAlpha
Alternatives Education, Research, Database of Managers and Investors

​Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

bottom of page