When a billionaire such as George Soros dumps holdings, such an action gets noticed. George Soros recently did away with his fund’s entire holdings of the following three biotech entities: iShares Nasdaq Biotechnology Index Fund, Novavax, and Gilead Sciences.
Soros is well known as a highly knowledgeable hedge fund manager. He is considered, by many, as one of the best hedge fund managers, of all time. There is a good reason, too, for Soros’s reputation: During Soros’s career at the Quantum Fund, he generated an average return in excess of thirty percent, annually. The return, basically, crushed the larger markets
The Soros Fund Management is one of the most watched hedge funds, the world over. It is a closely watched fund, despite the fact that Soros retired in 2015. The fund has over four and six/tenths of a billion dollars under management. The preceding statement means that the fund is significant within the market. It, as such, makes it imperative that investors, from around the globe, maintain a very close watch on the fund’s buys and sells, conducted on a quarterly basis.
Investors of Biotech, particularly, may be wise to look further into the quarterly transactions of the fund, currently. The Soros Fund sold its entire holdings in the iShares Nasdaq Biotechnology Index Fund (NASDAQ:IBB), Novavax (NASDAQ:NVAX), and Gilead Sciences (NASDAQ:GILD). The sale occurred during the second quarter of 2016. The information of the transaction was discovered by way of current 13F filings to the SEC.
The sale brings up the question: Should investors take a hint from the Soros Fund?
The Soros Fund Management may have exited; however, that said, there are still some attractive features in way of purchasing all 3 of the Biotech equities mentioned within the preceding text–that is, for the average investor, attempting to build a more substantial financial portfolio.
It is true the iShares Nasdaq Biotechnology Index Fund has not performed so well due to the current year’s blowback with respect to pharmaceutical pricing. However, that said, the issue will eventually melt away. In other words, despite the fact, the iShares Nasdaq Biotech Index Fund has performed unfavorably, currently, the political ramifications of the fund’s poor performance should diminish once the election for United States’ President comes to a conclusion. The preceding is stated, even if Clinton wins and attempts to implement pricing controls as to drugs within the pharmaceutical industry. The lobbyists, it is correct to state, will make major reform within the pharmaceutical industry, close to impossible to achieve. In simpler terms, high prices with respect to pharmaceuticals, more than likely, will remain in effect. The effect of the pricing may allow the biotech fund to rebound, substantially, in 2017.
It is true that Gilead, did not do so well, after sales of the company’s Hepatitis C pharmaceutical, hit its peak, as to performance. That stated, the biotech organization still has plenty of punch going for it. It is well-positioned to go after a singular mass acquisition or several smaller deals. The preceding action or actions, could significantly reinvigorate the Biotech organization, financially. The company, too, is trading at a noticeable low P/E ratio of seven, at the current time. This P/E ratio is crazily low. The implication is that the market expects the biotech’s Hepatitis C medicinal franchise to crash–completely. The projection is not likely to occur. The reason is the company’s new Hepatitis C pharmaceutical, Epclusa, is exhibiting great promise. The biotech stock is too reasonable in price to just place it on the back shelf.
The third biotech, that being Novavax, is moving towards an important turning point with its F-Protein nanoparticle RSV Vaccine, specifically formulated for persons of advanced years. The pharmaceutical may generate billions of dollars with regard to annualized revenue. The data readout is very positive and naturally is not guaranteed, and of course, the Biotech organization’s shares would tumble if the the pharmaceutical turned out unfavorable. The organization, however, still provides the public with a line of other valuable vaccines; which can maintain the company’s financial health–should the worst case scenario occur with regard to the F-protein nanoparticle RSV Vaccine.
Read more: The Greatest Investors: George Soros
The information, then, to glean from the preceding facts is this: It is more than likely not wise, for the average investor, to follow in the shadow of the Soros Fund with regard to the three biotech organizations. It appears, such an action, is not warranted. The move would be unwise for investors with a more patient nature. The patient investor looks for growth opportunities within an industry that is full of promise. It may never, too, become apparent why the Soros Fund Management sold its three biotech holdings. Hedge fund managers, on the whole, naturally, employ various strategies. The hedge fund manager is motivated on a different level, too, than a typical investor.
The 13F filings are good sources as to investment ideas. However, the preceding stated, the average, individual investor is best off to stay with a long-term strategy. He or she is better off to stick with a long term strategy than to foolishly mimic every move made by professional managers, who probably made their moves, based on other reasons, entirely.
Despite the average individual taking a different route, it is right to say with regard to following hedge fund managers, most persons keep close tabs on anything the famous Soros involves himself. His decisions are ideally wise with regard to his own financial intensity. Plus George Soros is now a billionaire, so ditching some biotech holdings not doing so well, makes sense, since he is no longer in the arena of becoming a billionaire; however, is merely maintaining status and administering growth, where he sees fit.
Many standard investors would very much like to achieve the outstanding wealth of George Soros who founded the Soros Fund Management and the Open Society Foundations.
Mr. Soros was born in 1930, inside of Budapest. He survived the occupation by the Nazis, during the Second Great War. He exited Hungary which was dominated by the Communists in 1947. He managed to make it to England. Once in England, the resourceful Mr. Soros graduated from the London School of Economics. He, thereafter, chose to reside within the United States. Mr. Soros accumulated his massive wealth, once residing within the U.S. His prosperity was created by way of the globalized investment fund which he established and managed.
The preceding stated, many persons are quite interested in the biography of George Soros.
George Soros has been a philanthropist since 1979. He provided funds in order to assist in the educational pursuits of students attending Cape Town University in South Africa. The Open Society Foundations are operational inside more than one-hundred nations. The Foundations’ annual expenditures reached $835 million in 2011. The Open Society Foundations’ purpose is to promote the virtues of an open society, the rights of human-beings, and the worth of transparency.
George Soros has authored well over a dozen books. His political essays, and articles on economics and society have appeared in major newspapers and magazines all over the globe.
The Daily Beast