The alternative investment firm is taking aim at a volatile sector.

Magnetar Capital will launch its first healthcare hedge fund in 2020. The firm aims to close a $400 million fund by mid-2020, according to Bloomberg. The company will look to capitalize on the growth of startups and by shorting established businesses with challenges on the horizon.

Chris Procaccini, a Magnetar portfolio manager, and four analysts will buy and sell stocks in the medical device, pharma, and healthcare services sectors. The company will reportedly not engage small biotech stocks.

Procaccini previously served as a manager at Hutchin Hill Capital, Highbridge Capital Management, and SAC Capital.

Magnetar Capital and Healthcare Trading

The report also states that Magnetar Capital will focus on holding 15 to 30 long positions in the healthcare sector. It will also maintain 20 to 40 short positions. The hedge fund has its headquarters in Evanston, Illinois. With AUM of $12.9 billion, the company has an established history in alternative credit, infrastructure, fixed income, and energy markets. The company famously made a fortune on real estate by betting against subprime debt before the 2008 financial crisis.

Further, new healthcare funds in 2019 include new vehicles at Avidity Partners and Woodline Partners.

Finally, Magnetar launched in 2005 under the direction of Alec Litowitz and Ross Laser.

Related: HarbourVest Closes Fifth Fund at $3 Billion