H&Q Healthcare Investors (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide long-term capital appreciation through investment in companies in the healthcare industry. The Fund invests primarily in biotechnology, medical devices, and pharmaceuticals. The Fund invests primarily in securities of public and private companies. The Fund may enter into option contracts in order to hedge against adverse price movements in the value of portfolio assets. Selection will emphasize the smaller companies with a maximum of 40% of the Fund's assets in restricted securities of both public and private companies. Hambrecht & Quist Capital Management LLC serves as the Fund's investment adviser.