is invested in ISIS with more than $100million dollar holding representing its #4 asset holding in its portfolio. They have a great track record and it is good to know we have quality investors in the name:
BB Biotech's goal is, in the long-term average return per annum in the double digits, and thus generate sustainable to achieve significantly better performance than the broad equity indices. BB Biotech invests in firms operating in growth markets innovative drugs, based on modern biotechnology, at least 90% of the portfolio value are listed companies. In addition, selective investments in emerging markets are made. It is our goal to understand the business of our holdings, ie to know includes key financial ratios, also the prevailing competitive environment, the product pipeline, the patent portfolio and the end customers of the products and services, to name just a few other aspects.
The target portfolio of BB Biotech includes 20-35 holdings. The large investments that are top holdings, usually consist of five to eight companies and not more than two thirds of the overall portfolio. Maximum participation should not exceed the 25-percent threshold. Due to the high weighting in the portfolio, these top holdings have both sales and profits. The smaller investments will consist of investments in companies that develop promising product candidates. There is deliberately no portfolio structure of statistical relevance chosen because we value the depth of sector and company expertise and seek personal access to the management of the portfolio companies.
As asset classes are BB Biotech equity investments, investments in private companies, corporate bonds and options available. Owing to liquidity and risk-return tradeoffs BB Biotech invests capital invest predominantly in equities. Investments in private companies can be up to 10% of the portfolio. These are weighted higher if sustained positive stock markets exist. Bonds are primarily in negative equity markets an alternative. Option transactions are conducted opportunistically on shares of portfolio companies or can be used to hedge currencies.
Here is their selection process...ISIS had to satisfy very stringent criteria and this fund see lots of promise in ISIS based on their extensive model.
In the process of selection of holdings, BB Biotech is based on the extensive experience of its Board members, as well as on fundamental analysis of the experienced management team of Bellevue Asset Management group access to a network of doctors and specialists in their respective sectors. Using a multi-stage investment process of the universe is about 800 companies systematically analyzed and evaluated. For every contribution a detailed financial model is created, which must represent a compelling value to the potential doubling in a period of four years. This potential doubling based on innovation, new products for serious diseases and an outstanding management.