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Associated equity: BB Biotech
BB Biotech, a Swiss-based investment company, targets long-term capital growth from biotechnology companies developing and marketing innovative drugs. At least 90% of the portfolio is held in listed companies, primarily those that already have products on the market or promising drug candidates in advanced stages of development. BION is benchmarked against the Nasdaq Biotech Index (in CHF) but is managed on a bottom-up basis, with a focused c 20–35 stock portfolio.
BB Biotech — 2 videos in collection
The biotech sector has been hit by uncertainties about the economic outlook, US tariffs and the regulatory policies of the new US administration. This has increased market volatility, especially in the small- and mid-cap companies that BB Biotech favours and performance has declined accordingly. Yet the news is not all bad. The company’s portfolio holdings are performing well, with several delivering regulatory and clinical milestones. BB Biotech’s manager has taken action to protect returns by increasing the focus on larger-cap names and enhancing risk management. Lower valuations have created opportunities for the trust’s manager to gain exposure to more high-quality companies. Most importantly, the biotech sector still has a positive long-term outlook, with commensurate rewards for those willing to wait out near-term volatility.
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