The woman who runs a $2.5 billion Fidelity fund told us about the 10-item 'mental checklist' she uses to choose the most promising stocks in a notoriously risky field

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Biotech is a notoriously risky investment. Many companies don't yet sell a product or have any revenue, and an investment can triple or tank in a day.

, which Kontopoulos hopes will hit their strides and deliver consistent financial growth in just a year or two.The buzzy biotech Perlara got into Y Combinator and raised $10 million from investors like Mark Cuban before things went south. Its founder shares the key lesson he learned from the failure.

In the last bucket are cheaper"high risk, high reward" companies, which could be poised to move into the middle bucket — but could also fail. How Kontopoulos's strategy will perform is still a work in progress, since Kontopoulos took over less than a year ago. The fund has done somewhat better than the Nasdaq Biotechnology Index over the past year, with a total return of 3.5%. The fund charges ordinary investors an expense ratio of more than 1%, which can cut into returns.two out of five stars by Morningstar as of the end of March, a ranking that's based on past performance.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Fidelityiscriminal

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines