STOCKWATCH: The ugly sisters of biotech
This article was originally published in Scrip
Ask almost any hedge fund manager and you'll find that they seem to have many more short ideas than long ones. That means that they have identified more companies that they think are likely to fail resulting in their share prices going down, than those who are doing everything right and are likely to succeed. However, it's a lot harder to predict the stock market performance of the biotech sector as a whole because it is impossible to predict when the market forces that have resulted in the recent biotech bubble – algorithmic trading and the interest of generalist investors – will fade away.
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