Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Andy Acker - Empty Rooms: Investing in Biotech at Janus Henderson (Capital Allocators, EP.274)
Dec 14, 2023
Andy Acker, a Portfolio Manager at Janus Henderson Investors, specializes in healthcare strategies, focusing on biotech opportunities often overlooked by mainstream investors. He discusses the significant advancements in drug development despite challenges faced by biotech stocks. Acker explains his investment process, including idea filtering and assessing management teams. He highlights breakthroughs in gene therapy for severe genetic conditions and shares insights on navigating rising healthcare costs amid evolving market trends. His contrarian view unveils promising green shoots in a seemingly empty room.
AI Snips
Chapters
Transcript
Episode notes
Biotech Bear Markets & Value
- Biotech is volatile, with frequent bear markets.
- The recent bear market saw many companies trading below cash, creating potential value opportunities.
Researching Science and Business
- Research by reading clinical literature, attending medical conferences, and meeting with key opinion leaders.
- Focus on companies addressing unmet medical needs with novel products.
Importance of Management Teams
- Andy Acker's biggest mistake was underestimating the importance of a good management team.
- A good example is Global Blood Therapeutics, which persevered to develop a better sickle cell treatment, despite early setbacks.