Buyside Europe

Spreading the wealth

OXFORD - Not everyone is entirely happy with the current U.S. biotech fizz. Anthony Milford of Framlington Health Fund in London prefers to invest in biotech stocks when they are both out of vogue and inexpensive. "Last year we saw U.S. small cap companies emulating if not outperforming the top tier biotech companies. Now it is difficult to find sound U.S. biotech stocks that have not already shown a good return," he said.

Consequently, Milford expects he will reduce his weighting in U.S. stocks - they have traditionally accounted for about 80 percent of his biotech holdings - and take on more European opportunities. "European stocks have been a drag on performance during 1999 but this could very well change during 2000. I do not believe there is that much wrong with the fundamentals of the leading European businesses and I would hope that European stocks could actually outperform the U.S. this year," he said.