Rayno Biopharmaceuticals Portfolio Winners July ’12 YTD: ALXN,IMGN,PCYC,REGN,SGEN Etc.

Biotechnology Sector Remains Strong Despite High Valuations

The Rayno Biopharmaceuticals Portfolio is outperforming most of the biotech indices and ETF’s with many winners over 50% YTD. The best trade for June was long Pharmacyclics (PCYC) and  short Medivation(MDVN) for a net profit of 51%. In one of the best years since 1999 for the biotechnology sector our core picks- Alexion, Biogen, Regeneron and Seattle Genetics–  have returned almost 300% since we began coverage on 2/2/09. Although there have been outliers in the sector lately (such as obesity stocks) which have overweighted ETF performance due to FDA approvals and favorable clinical news  we believe our portfolio approach minimizes this volatility. The sector has also benefited from M&A trends and two of our portfolio picks have been acquired. Also favoring the sector has been its independence from economic events both in the U.S. and Europe.On the positive side the sector also benefits when NASDAQ outperforms so there can be a weighted hit on “Risk On ” trading days.