iversified Biotech Group (DBGI) is marketing its first mutual fund, the open-end InvestBio Opportunity Fund
, which was launched Octorber 11. The fund mainly invests in the stocks of small- to mid-cap biotechnology companies and is geared to investors seeking long-term capital appreciation.
"Investors are looking for opportunities to start with a clean slate and take advantage of the sector that we believe has the greatest long-term potential," said Scott L. Mathis
, chairman of DBGI. "We're convinced there are excellent investment opportunities among the undervalued small- to mid-cap biotech companies out there with effective, late-stage products and strong cash positions."
New York-based DBGI provides biotech investors with a range of information and guidance, including email alerts, a bimonthly report, a monthly stock letter, proprietary stock research, model portfolio data and website.
"We plan to be very strategic about finding companies with products that address unmet needs in the market," said Libbe Englander
, Ph.D., portfolio manager of BioPharma Capital Limited
, the fund's sub-adviser. "These companies will also need to have a clear set of milestones both behind and ahead of them that can be tracked and evaluated."
She added the fund plans to invest in a smaller pool of companies than other biotech funds, enabling the portfolio managers to know the holdings intimately and thus be in the best position to make fast and confident decisions.
The fund will invest at least 80% of its net assets in the equity securities of biotechnology companies and related health-sciences firms, and plans to participate, when appropriate, in select initial public offerings.
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