Manager Question of the Month: How Do Managers Approach Boom-or-Bust Biotech Stocks?
Benchmark rebuild in June put pressure on some small-cap managers.
American Century Small Cap Value's (ASVIX) manager Jeff John used to be able to ignore boom-or-bust biotechnology stocks because they had never been a big part of the Russell 2000 Value Index and rarely cleared the strategy’s quality screens. That changed in June 2021, however: After years of lagging performance, biotechs more than doubled to 6.2% of the benchmark.
Drew Carter does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.