- Comment on Performance
- New Investments: ALNY, SAGE, AGIO
- Rebalancing of Existing Trades: BPMC, AAVL
Comment on Performance
The last few months have seen poor performance in the overall biotech sector. Since the initiation of DEC investments (June 3, 2016), the NASDAQ Biotechnology Index (NBI) has seen a 16.9% drop in value, while DEC positions declined a comparable 16.0%, as seen in the table below. Investment commentators have attributed the strong drop in part to increasing concerns about the possibility of the US government taking steps to regulate drug prices. However, it is also possible that valuations have been overly inflated and that the current market correction reflects a more conservative assessment of future economic potential.
New Investments
DEC has opened several positions this week, as detailed below. Brief investment theses will be posted next week.
- ALNY (Alnylam Pharmaceuticals) - Purchased 95 shares at $79.40 on October 13
- SAGE (Sage Therapeutics) - Purchased 175 shares at $43.40 on October 14
- AGIO (Agios Pharmaceuticals) - Purchased 107 shares at $70.28 on October 14
Rebalancing of Existing Trades
Downward movement in the market has created opportunities to rebalance certain positions and purchase shares on a more reasonable valuation. The following trades were made.
- BPMC (Blueprint Medicines) - Purchased 370 shares at $20.28 on October 1
- AAVL (Avalanche Biotechnologies) - Purchased 320 shares at $7.83 on October 13
Below is the current status of the overall portfolio, based on the initial $100,000 investment.
