November 18, 2019
Fuelled by buoyant sentiment, it’s natural for astute investors to search for the next Australian hero, but beware adventures in biotech investing. Jun Bei Liu, lead portfolio manager of the Tribeca Alpha Plus Fund, writes for The Australian Financial Review.
By any measure, 2019 has seen an incredible run in the equity market and there’s still one month to go. The ASX 200 has returned 19 percent for the year to date, a stellar result that no one thought was likely this time last year.
The key change behind this rally was a sharp turn in stance across global central banks, particularly the Federal Reserve, which moved from tightening to loosening within the space of a few months.
Global asset prices ballooned, global bonds returned 5.6 per cent and the S&P 500 rallied 23 per cent. On the back of strong investor enthusiasm, we have witnessed incredible valuation expansion across numerous sectors, even in Australia.
While the tech sector and its sky high valuations has been the subject of speculation, there is one other notable sector that has so far passed under the radar – the Australian biotech sector.
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