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Deshawn Walker, CFA, and Jevon Glover, MD , grew up together and remain close friends today. Walker is a manager at Primary Partners Associates (
Deshawn Walker, CFA, and Jevon Glover, MD grew up together and remain close friends today. Walker is a manager at Primary Partners Associates PPA and works on the Small Cap Sciences Fund, which focuses on healthcare securities with great upside potential. Glover recently left his medical practice and now works for a sellside securities firm where he is researching Cancer Advances Corp. CAC a company that uses artificial intelligence to design cancer drugs. CAC has yet to become profitable, but Glover feels optimistic based on its pipeline. He strongly suggests that Walker take a position in CAC since he expects the company to outperform. Walker conducts thorough due diligence and concludes that CAC is riskier than its peers but also that the company could see significantly higher returns if regulators approve certain drugs. Therefore, he deems CAC appropriate for the Small Cap Sciences Fund.
Regarding the purchase of CAC stock for the fund, Walker will most likely comply with Standard Disclosure of Conflicts if he:
A
adds an insignificant position in CAC to the fund, so disclosure is unnecessary.
B
explains to Glover that he cannot buy CAC since a conflict of interest exists between them.
adds a significant position in CAC to the fund after he informs PPA of his relationship with Glover.
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