Biotech’s Q2: Lots Of Candidates That May Deliver Alpha
Background
When both large cap biotech (IBB) and the smaller names (XBI) began to get a bit frothy by late 2014 and most of 2015, I began comparing the sector to tech (QQQ) in the 1998 period: not quite a bubble, but close. As it happened, biotech never went to the extremes of the tech-telecom sector in 1999-2000, but the analogy otherwise holds. In both cases, after the sectors peaked, private investment stayed strong. This meant that the significant amounts of smart money believed that inflat…
