Back on January 25, 2016, I singled out my favorite 15 biotech stocks for subscribers to Brush Up on Stocks. The list was broken out into two sections.
One consisted of the larger eight names ($500 million to $15 billion market cap) that are “safer” because they are bigger and they have more advanced products in development, or already on the market.
The second group had the smaller biotech companies that are riskier because their products are in early development.
As of the close June 2, 2016, the first group was up 21.2%. How did they do against the market? The IBB biotech ETF was up 5.2% over the same time.
Living up to their profiles the riskier names were, well, riskier. There was some damage. But overall when you include them, the Brush Biotech 15 was up 6.5% compared to 5.2% for the IBB.
That’s not huge outperformance, but it’s still early days for this Brush Up on Stocks biotech portfolio. And it’s not bad outperformance — in a market where most actively-managed funds (about 70%) consistently lag the markets.