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Polar Capital launches biotech fund for 'major new innovation cycle'
by Dylan Lobo on Nov 01, 2013 at 10:24
Polar Capital has launched a biotechnology fund to tap into major scientific developments it believes will transform the sector.
The Polar Capital BioTechnology fund is managed by David Pinniger, who joined the boutique in August from SV Life Sciences, where he spent five years running the firm's International Biotechnology Trust.
The Polar fund has a global remit, investing in a basket of 40-60 stocks with performance benchmarked against the Nasdaq Biotechnology index.
It is available in dollar, sterling and euro-denominated share classes and levies a 1.5% annual charge for retail investors and 1% for institutional.
Biotech has been one of the strongest performing asset classes in 2013 with the Nasdaq index up 45% in the year to date as investors got excited about the potential of the genetic decoding revolution.
While this has led to talk of a bubble emerging in the sector, Pinniger does not share this concern.
'We believe the global biotechnology industry is poised to deliver significant value creation over the coming years driven by a major new innovation cycle,' Pinniger said in a statement accompanying the launch.
'It is our view that the sector's stock market resurgence in recent years could be just the start of a multi-year re-rating as this high growth global industry comes of age.
He added: 'Advances in information technology - in particular increases in computer processing power - are enabling medical science to make rapid advances in understanding the complex biology of health and disease.
'In recent years we've also seen a proliferation of tools and technologies that are enabling new ways of targeting the molecular basis of disease.'
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