Rayno Biopharmaceutical Stock Portfolio Up 30%
What bear market?
Rod Raynovich
My biotech picks were published in Genetic Engineering News (GEN) in February 2008. My strategy was to allocate 25% in one ETF(XBI), 50% in large caps and 25% in small caps biotechs. My proprietary system is based on technicals, core technology and company financials. So despite all the volatility in 2008 and crowded trades in materials,energy, retail,real estate and the death spiral for financial stocks the safe haven was Biopharm and Medtech.
Read the complete GEN Wall Street Roundup story here.
The main drivers of this market as reviewed in the article were M&A, product announcements, and value. The biotechnology market is coming up on its strongest seasonality the 4th quarter a period of bullishness for smaller caps.
Here are the picks:
| Stock | Company | Weighting | 2/1/08 | 8/15/08 | % return YTD | Ave return |
|---|---|---|---|---|---|---|
| XBI | ETF S&P Bio | 25% | 55 | 69 | 25.5 | 25.50% |
| Large Cap Buys | 50% | 31% | ||||
| AMGN | AMGEN | 47 | 65 | 38.45 | ||
| CELG | Celgene | 59 | 75.9 | 28.6 | ||
| DNA | Genentech | 70 | 98.25 | 40.35 | ||
| PFE | Pfizer | 22 | 20 | -9.3 | ||
| Small Cap Buys | 25% | 34% | ||||
| ALNY | Alnylam | 30 | 34.75 | 15.8 | ||
| CBST | Cubist | 18 | 23.55 | 30.8 | ||
| CRA | Celera | 15 | 14.5 | -3.33 | ||
| EPIX | Epix | 3 | 1.92 | -36 | ||
| ISIS | Isis | 15 | 19.1 | 27.2 | ||
| MATK | Martech | 28 | 37.7 | 34.7 | ||
| MYGM | Myriad Genetics | 40 | 65.5 | 63.75 | ||
| SGEN | Seattle Genetics | 9 | 12.15 | 34.9 | ||
| VPHM | ViroPharma | 9 | 13.9 | 54.5 | ||
| Return YTD | +30% | |||||