Portfolio Management
There have been a few industries that have been outperforming the S&P 500 since the beginning of 2015 – one of them being the biotechnology industry. While this run is nothing new, it is notable to mention that this industry is off to a good start for the year. This week, we have chosen the Fidelity® Select Biotechnology Fund (fbiox) as our fund of the week.
Inside the Fund
The fund was launched in 1985 and is managed by Rajiv Kaul. Currently, it has about $12 billion in assets under management (AUM). This fund is composed of healthcare companies of all sizes. The majority of these companies are based in the United States.
So far in 2015, the fund is up about 11%, which is in-line with the iShares NASDAQ Biotechnology Index (IBB) and well above the S&P 500 index, which is up about 3%.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|
| 11.41% | 18.18% | 36.59% | 65.66% | 35.05% |
Largest Holdings
Nearly 30% of the fund’s portfolio is comprised of its top 5 holdings.
| Symbol | Stock | Portfolio Weight | YTD Performance |
|---|---|---|---|
| GILD | Gilead Sciences | 6.57% | +12% |
| CELG | Celgene | 5.69% | +10% |
| VRTX | Vertex Pharmaceuticals | 5.24% | -2% |
| BIIB | Biogen | 5.13% | +19% |
| ALXN | Alexion Pharmaceuticals | 4.44% | -1% |
The Bottom Line
The biotechnology industry is an industry that many aggressive investors have kept a close eye on over the years. Investors seeking exposure to the industry may consider a mutual fund like the Fidelity® Select Biotechnology (fbiox).
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