Acker: Biotech experienced eleven bear markets of over 20% since 2006
Andy Acker · Andy Acker - Empty Rooms: Investing in Biotech at Janus Henderson (Capital Allocators, EP.274) · Oct 6, 2022 · at 19:28
Andy Acker, Lead Portfolio Manager at Janus Henderson Investors, explains the historical volatility of biotechnology stocks.
0:00 / 0:24exact quote · 24.8s
720p mp4 · rendered on demand · StarZero watermark
“Back when the SMP select biotech index and the XBI, which is an ETF that tracks that broad biotech index that was created back in 2006. So about 16 years ago, since that time before the recent bear market, and we'll get to that, but there were 11 effectively bear markets in that 16 year period where these stocks declined at least 20%.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Andy Acker
Acker: Wall Street drug launch estimates are wrong 90% of the time
“And what we've found again in more than 23 years of investing in health care is that the consensus estimates from Wall Street Are wrong about 90% of the time.”
Acker: Muscular dystrophy gene therapy could potentially launch by mid-2023
“There's been no disease-modifying therapy, and now we have a gene therapy that could be launching potentially by the middle of 2023.”
Acker: A bad management team can destroy a great drug molecule
“Probably the biggest mistake that I've made in my career is underappreciating how important a good management team is, because if you have a great molecule and it meets a bad management team, you can destroy a tremendous amount of value just by making bad deci…”
Acker: Biotech stocks fell 64% absolute and 75% relative in 2021-2022
“Between February of 2021 and June of 2022, we had one of the worst bear markets in biotech sector in history. So on an absolute basis, these stocks declined 64% and relative to the health care sector, they traded down about 75%.”
Acker: Over 200 biotech companies traded below cash after the 2022 crash
“Now, after that, you get to a point where actually 200 different companies were trading below the levels of cash on their balance sheet. That's highly unusual. We've never seen that before, even going back to The global financial crisis and the bear market, th…”