Seeking Alpha – Leading hedge fund and mutual fund managers that have a long-term track record of generating high market-beating returns are slightly under-weight the biotech industry, by a factor of 1.5. However, this can easily be explained as many of the biotech stocks are too small for institutional sponsorship.
These high alpha or guru funds number less than 100 or less than one percent of all funds and they control almost ten percent of the U.S. equity discretionary fund assets. Together, they bought a net $104 million of stock in biotech companies, buying $854 million and selling $750 million worth during the quarter.
