The Inside Track on Two Biotechs

As I review the performance of my portfolio over the first half of the year, two items stick out. First, my portfolio has been much less volatile than the overall market, which was to be expected given a substantial allocation to cash that I increased in March, as well as some short positions that paid off in the rocky second quarter when the market pulled back. The second observation is that a good deal of the solid performance in the portfolio was due to my investments in the biotech sector, which performed very well in the first half of the year. Positions in SciClone Pharmaceuticals (SCLN) and Horizon Pharma (HZNP) have been two of my standout performers among other winning small positions in this speculative sector.

I believe the biotech sector still offers interesting opportunities. The sector has been driven by key approvals at the Food and Drug Administration and by solid mergers and acquisitions activity throughout the first six months of the year. The sector has also benefited, as it unaffected by the ongoing crisis in Europe. All these trends should continue to drive good performance in the second half....353 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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