Korean Fund That Made 50% on Biotech Shares Sees Replay of 2015
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Improving earnings to drive gains in medical companies
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Larger, export-driven companies to extend losses, fund says
The manager of South Korea’s best equity fund says biotechnology stocks are going to replicate this year’s performance in 2016.
“It is going to be like a repeat of this year,” said Han Yongnam, the lead fund manager in Seoul at Dongbu Asset Management Co., which oversees 13 trillion won ($11 billion). “I don’t believe in the cheap valuation of exporters and traditional sectors.”
Han’s Dongbu Bio-healthcare Securities Investment Trust fund returned 50 percent this year, the most among 141 local funds tracked by Bloomberg. His holdings included stem cell researcher Medipost Co. that rallied 134 percent this year, trouncing the 2.5 percent gain in the Kospi index. The Korean benchmark’s medical supplies industry group surged about 90 percent, despite a decline of more than 5 percent in the MSCI Emerging Markets Health Care Index…
Korean Fund That Made 50% on Biotech Shares Sees Replay of 2015
