BION is a Switzerland-domiciled investment company, targeting attractive long-term returns from predominantly mid-/large-cap biotech companies with established product portfolios (sales and earnings) and promising pipeline candidates. It is benchmarked against the NASDAQ Biotech Index, but is managed bottom-up with a concentrated 20-35 stock portfolio.
BB Biotech (BION) recently updated the market on its views on the COVID-19 pandemic and how they are reflected in its portfolio (see video link below and the investor update). While direct exposure to infectious disease specialists in the portfolio is low, lead manager Daniel Koller expects a promising vaccine candidate could arise from one of the fund’s holdings in companies with RNA-based technologies (five RNA medicine-focused positions make up c 25% of the portfolio). The BION team recently finished an 18-month process of rebalancing the portfolio towards promising small and mid-cap companies to drive future growth. While this has proved a headwind for recent performance, over the long term BION has produced double-digit annual total returns in both share price and NAV terms.