New York (HedgeCo.net) \u2013 Over the last eight trading sessions, the NYSE Arca Biotech Index has lost 18.74% which is an incredible short-term decline for an index. Yes the overall market is down over the same time period, but only 5.33%.
\nThe selling started with two things\u2014presidential hopeful Hillary Clinton tweeting that \u201cPrice gouging like this in the specialty drug market is outrageous. Tomorrow I’ll lay out a plan to take it on.\u201d Of course her tweet was in reaction to the New York Times article about Martin Shkreli and Turing Pharmaceuticals raising the price of Daraprim from $13.50 to $750 per tablet. <\/p>\n
The biotech sector had already been struggling in the third quarter, but after the combination of news and Clinton\u2019s tweet, the selling has accelerated. According to a recent article from Reuters, the selling has hurt health-focused hedge funds especially hard. The article stated that Baker Brothers Advisors, Healthcor Management, Palo Alto Investors and Deerfield Management are all looking at potential double-digit losses for the month of September and those numbers were based on the 13F filings at the end of June. <\/p>\n
The Reuters article also stated that some managers think the selling is overdone at this point and they are looking for bargains within the sector.<\/p>\n
Rick Pendergraft
\nResearch Analyst
\nHedgeCoVest<\/p>\n","protected":false},"excerpt":{"rendered":"
New York (HedgeCo.net) \u2013 Over the last eight trading sessions, the NYSE Arca Biotech Index has lost 18.74% which is an incredible short-term decline for an index. Yes the overall market is down over the same time period, but only […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-50111","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/50111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=50111"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/50111\/revisions"}],"predecessor-version":[{"id":50112,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/50111\/revisions\/50112"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=50111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=50111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=50111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}