Capital Allocators – Inside the Institutional Investment Industry Andy Acker - Empty Rooms: Investing in Biotech at Janus Henderson (Capital Allocators, EP.274)
Oct 6, 2022
Andy Acker, a Portfolio Manager at Janus Henderson Investors, brings his expert insights on navigating the often-overlooked biotechnology sector. He shares his fascinating journey from biochemistry at Harvard to investment success. Acker discusses significant advancements in drug development and the implications of the '90-90 rule' for biotech stocks. He delves into gene-based therapies and the potential they hold for addressing unmet medical needs. With a focus on current market risks and opportunities, Acker sheds light on how contrarians can thrive in this empty room of investment.
AI Snips
Chapters
Transcript
Episode notes
Assessing Management and Financials
- Evaluate the management team by considering their ability to add value and navigate setbacks.
- Assess financials, build models, and use a discounted cash flow approach to estimate intrinsic value.
GBT's Perseverance
- Global Blood Therapeutics developed a good but not great drug for sickle cell disease.
- Instead of stopping, they continued research and developed a potentially game-changing new therapy.
Portfolio Construction
- Acker's team uses a barbell approach, balancing defensive large-cap pharma and managed care companies with high-growth biotech.
- They target companies with a high conviction level and manageable risk, determined by the discount to intrinsic value.