Pictet Biotech

Investing in the Pictet Biotech fund could be attractive considering the tremendous growth potential of the biotechnology industry but investors should be prepared to suffer high volatility.

Fernando Luque 3 December, 2003 | 6:25PM
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So far this year the Pictet Biotech fund has done well, rising over 40%, but other biotech funds sold across Europe have risen by over 60%.

Part of this relative underperformance is because of the fund’s underweight position in smaller companies, a segment of the market that has performed strongly this year. The fund invests about 33% in smaller firms compared with 37% for the average biotech fund.

Despite this underweight position in small firms, the size of the companies the fund holds is generally smaller than average. The median market capitalisation of its holdings is about $2 billion (£1.2 billion) compared with a median of just over $3 billion for the biotech funds in Morningstar’s Life Science category.

This size tilt is consistent with the manager’s

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Pictet-Biotech PUSD881.84 USD-1.27Rating

About Author

Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain