4Q Financial Preview: Hold vs. fold

To add to biotech's robust third quarter move and end the year on top of the broader indices, investors will have to refrain from taking money off the table this quarter. While the temptation to cash out will be great, bankers and buysiders think there are enough milestones in the group to retain the momentum that has attracted generalist and retail investors.

For the past four years, the fourth quarter performance of the biotech group has been better than that of the previous three quarters combined, while at the same time, biotech has underperformed the fourth quarter performance of the NASDAQ. But this year, biotech had a breakout third quarter, which could affect how investors feel about keeping their money on the table in the fourth quarter. ...