Stock Market

Biotech rout in 2021 has led to some massive hedge-fund losses

Biotech stocks have fallen to earth with a thud in 2021 after soaring last year amid excitement over the development of COVID-19 vaccines, dealing big losses to some hedge funds.

The sector is being buffeted by concerns Congress will move to put a lid on drug pricing and a surfeit of early-stage biotech shares as the IPO market booms.

Perceptive Advisors, a prominent biotech hedge fund that manages about $9 billion, lost about 30% this year through November in its main fund, investors say. A hedge fund managed by OrbiMed Partners, which invests more than $18 billion in healthcare in public and private markets, has lost more than 40% this year through November, people familiar with the fund say. Both funds had scored big gains over the past two years.

Meanwhile, a hedge fund run by San Francisco-based Logos Capital, which manages about $1.4 billion, is down more than 25% for the period, other people say. Cormorant Asset Management lost 10% in November alone, adding to double-digit losses earlier in the year.

“It’s been a very challenging year,” said Bihua Chen, founder of Cormorant, which focuses on smaller biotech companies.

An expanded version of this report appears on

Also popular on

Apple’s iPhone successor comes into focus.

Related News  GoPro stock falls after revenue comes up short

China seeks first military base on Africa’s Atlantic coast, U.S. intelligence finds.

For more updates check below links and stay updated with News AKMI.
Life and Style || Lifetime Fitness || Automotive News || Tech News || Giant Bikes || Cool Cars || Food and Drinks


Show More

Related Articles

Back to top button

usa news wall today prime news newso time news post wall