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August 04, 2005
Biotech: The new found love of Hedge Funds
Biotech has of late caught the fancy of hedge funds. The sector had been almost inactive for the last one year and has shown some activity in July. Analysts say that this is a normal phenomenon and attribute it to the fact that the biotech companies usually garner funds to help them with their research and trials for the year. Once the funds are nearing their end, they hop back into the market to get some more. Hedge funds have quite timely identified this sector and have jumped into it with enthusiasm. It is believed that this investing will continue following the positive swing of the field. However any negative news or development may drive away the hedge fund investors any time. Hedge fund analysts are still upbeat about the performance of the sector since there has been a lot of activity in the pharmaceutical industry and say that the trend will continue. Along with this M&.A activities in the sector has also gone up. All in all the sector is blooming right now. Business-standard.com reports:
“There was almost no activity in the space for (the preceding) three months and market conditions had been relatively poor for almost a year,” said Cully Davis, director in the Equity Capital Markets group at CSFB in Palto Alto.”
Read More: Hedge funds put biotech in vogue
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