Biotech hard to 'second-guess'

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AEGON'S UK Smaller Companies fund is underweight the ‘unpredictable' biotech sector, having no exposure compared to nearly 5pc for the benchmark.

Elaine Morgan, who has run the £11m fund since its launch in June this year, said she was not overly keen on the sector and believed it was a difficult area to second-guess. “We are cautious on pharmaceuticals and biotech stocks and are underweight compared to the sector. “We just think the bias there is for companies to put everything into the numbers while the actual performance is difficult to predict, but we do use the stocks and we will have one or two picks a year, although currently we have no holdings compared to the benchmark of 4.8pc.” Morgan, who has been a smaller companies f...

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