Rayno 2009 Biotechnology Portfolio-Mid Year Update

The Rayno Biopharm Portfolio is flat YTD. This compares to the broad-based ETF IBB which also flat YTD and the XBI which is down 5% YTD. Biotech in 2009 has significantly lagged the NASDAQ which is up 11%, however the S&P 500 is down 2.7% YTD. The Rayno portfolio consists of 24 stocks weighted by market capitalization and has not been rebalanced since inception in January 2009. Genentech is out of the portfolio since being acquired by Roche with a 2009 net gain of 16%.

Among the winners were:
AMGN DNA ISIS and UTHR in biopharmaceuticals
ABAX ILMN HOLX and IMA in Dx and devices.
MITI RDEA and TRGT in small caps.

Among the losers were ARRY, CEPH and CBST.

Large caps fared better than small caps.
MedTech, tools and devices outperformed small cap biopharm.
The portfolio was up about 4% YTD until the early July correction which shaved 2% off the NASDAQ.

Biotech and pharmaceuticals are participating in today’s rally up 1-2%.
Biotech investors should look at overweighting the following stocks that are in the Rayno portfolio:
BIIB CBST GILD VPHM

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