Winner: Fidelity Select Biotechnology Fund
Biotech stocks have been red-hot this year thanks to huge advances against diseases like cancer, diabetes, hepatitis C and HIV. A key driver of late has been the deep analytics on the human genome.
At the same time, however, there also has been another boost from mergers & acquisitions, as Big Pharma’s aging giants increasingly look to dealmaking to make up for shortcomings thanks to the expiration of patents on its blockbuster drugs.
All of this has been welcomed with open arms by the staff heading the Fidelity Select Biotechnology Fund (FBIOX). That includes manager Rajiv Kaul, who has been investing in biotech for the past 17 years and has led FBIOX to an average annual return of nearly 33% in the past three years.
Current FBIOX top holdings include Gilead Sciences (GILD), Amgen (AMGN), Celgene (CELG) and Biogen (BIIB). The fund charges 0.81% in expenses, or $81 for every $10,000 invested, and has no sales load fee.