This week on Generating Alpha, I’m joined by Joseph Edelman — founder and CEO of Perceptive Advisors, and arguably the most successful biotech investor of the past two decades. Over the last 25 years, Joe has built Perceptive into one of the most dominant and respected healthcare-focused investment firms in the world — with a track record that rivals the best human-managed funds in modern history.

Joe launched Perceptive in 1999 with a simple but highly differentiated insight: that deep scientific expertise, paired with bold and patient capital, could drive outsized returns in one of the most complex and volatile corners of financial markets. Since then, he’s backed some of the most transformative biotech and life sciences companies — businesses pioneering breakthroughs in gene therapy, rare diseases, oncology, and cutting-edge therapeutics.

In this rare conversation — his first-ever podcast appearance — we dive into his upbringing, how his passion for science shaped his worldview, the founding story of Perceptive, and how he navigates an industry defined by uncertainty, asymmetric outcomes, and extreme volatility. We also talk about what separates great investors in highly specialized spaces, how he thinks about risk, and the mindset that’s driven one of the most remarkable investing careers of the past quarter century.

Joe’s story is one of conviction, intellectual rigor, and staying true to a focused mission — offering a masterclass in long-term thinking for anyone in investing, entrepreneurship, or science-driven industries.