Edison issues update on The Biotech Growth Trust (BIOG): Onwards and upwards for performance recovery
Retrieved on:
Wednesday, April 10, 2024
The sector was negatively affected by sharply rising interest rates rather than a deterioration in industry fundamentals; indeed, the managers continue to refer to a ‘golden era’ of innovation within the biotech sector.
Key Points:
- The sector was negatively affected by sharply rising interest rates rather than a deterioration in industry fundamentals; indeed, the managers continue to refer to a ‘golden era’ of innovation within the biotech sector.
- BIOG’s relative performance has been through a difficult period given its high weighting in emerging (smaller-cap) biotech stocks, which performed significantly worse than the shares of large-cap biotech businesses during the sector sell-off.
- BIOG’s managers are very excited about the trust’s prospects and encouraged that investors are once again rewarding biotech companies that deliver positive outcomes.
- In keeping with many other investment companies, the trust’s discount is wider than its historical averages.