Mutual respect for biotech

Although biotech stocks have taken a drubbing so far this quarter, fund managers do not appear to be getting out of the group or increasing the percentage of cash holdings in their funds. Nor does there seem to be a net drain out of biotech funds.

Since Sept. 1, the highest the NASDAQ has been since July, the tech-laden Composite index has fallen 18 percent, while the BioCentury 100 has fallen only 8 percent. The declines in net asset value at two biotech mutual funds, the Fidelity Select Biotechnology fund and the Franklin Biotechnology Discovery Fund, also have tracked the biotech group. Since Sept. 1, the Franklin fund has dropped 9 percent and the Fidelity fund is off 6 percent. Both the BC100 and NASDAQ were up 5 percent last week...