The Recent Performance of 'Baker Brother Biotech Stocks' is Awful

The bursting of the biotech stock bubble has been painful for Baker Bros. Advisors, the closely watched healthcare hedge fund with approximately $7 billion under management. The days when "Baker Brothers stocks" went up and up and up appear to be over. Since March, the fund's portfolio holdings have been spanked hard. 

Here's a performance chart since March 1 of the largest biotech and drug stocks held by Baker Brothers Advisors, according to its (admittedly dated) 13-F filing of Dec. 31, 2013.

PCYC Chart


This next chart tracks the largest healthcare stock additions to the Baker Bros. portfolio as of the end of 2013 (again, culled from the dated 13-F filing):

BMRN Chart


Some perspective is in order, of course. Baker Bros. made a ton of money during the biotech stock bull market so these losses might be mere flesh wounds for the fund. Not so, however, for the unfortunate retail investor whose healthcare investment strategy was to simply, "Buy all the Baker Brothers stocks because they only go up."

That rule no longer works. 

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

If you liked this article you might like

These 2 Biotech Stocks Still Have Upside

These 2 Biotech Stocks Still Have Upside

What's Holding Up This Market?: Cramer's 'Mad Money' Recap (Monday 12/11/17)

What's Holding Up This Market?: Cramer's 'Mad Money' Recap (Monday 12/11/17)

Acadia, Dynavax Make the Biotech Mailbag

Acadia, Dynavax Make the Biotech Mailbag

Inovio Rises On Phase 1 Data for Zika Vaccine -- Biotech Movers

Inovio Rises On Phase 1 Data for Zika Vaccine -- Biotech Movers

Biotech M&A: Who's Next After Gilead-Kite?

Biotech M&A: Who's Next After Gilead-Kite?