Sequoia Capital’s China Affiliate Launches Hedge Fund for Health, Biotech Stocks

Sequoia Capital China, the Chinese affiliate of the Silicon Valley venture capital firm, has quietly launched a new fund to buy and sell shares of publicly listed health and biotech companies, according to two people with knowledge of the matter. This marks the firm’s second hedge fund as the traditional boundaries between public and private market investors continue to blur and as the firm hopes to tap the global biotech boom.

The creation of the new Hong Kong–based fund, Sequoia China Healthcare Partners, hasn’t previously been reported, and the fund’s size couldn’t be learned. It focuses mainly on stocks of Chinese biotech and healthcare companies that are listed outside mainland China. That means the Sequoia fund could take advantage of current prices for Chinese health stocks, which have fallen since early July amid a broader selloff of Chinese stocks triggered by Beijing’s regulatory crackdown on mainly consumer internet companies.