The Biotech Growth Trust: Industry Fundamentals Remain Positive
Edison | Feb 21, 2017 06:56AM ET
Biotech Growth Trust Plc (The) (LON:BIOGW) is a specialist vehicle, aiming to generate long-term capital growth via investment in global biotech stocks. Following a particularly volatile period for the biotech industry, where concerns about drug pricing and investor risk aversion have weighed heavily on stock prices, the managers are hopeful that greater clarity regarding US healthcare policy will lead to continued improved performance of biotech stocks. Industry fundamentals remain attractive, including continued innovation and valuations are very supportive, which offers the potential for higher industry merger and acquisition activity.
Investment strategy: Rigorous bottom-up research
BIOG’s managers, Richard Klemm and Geoff Hsu, are able to draw on the deep research experience at OrbiMed Capital to construct a concentrated portfolio of global biotech stocks. Potential investee companies are subject to rigorous fundamental research, including an in-depth analysis of research pipelines; stocks are selected ahead of anticipated positive data, as potential acquisition targets or if they are approaching profitability. BIOG invests across the market cap-spectrum, although around two-thirds of the portfolio is held in major biotech companies. At the time of acquisition, no single position may exceed 15% and gearing of up to 20% of NAV is permitted.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.