BioTech 10
Ten high-conviction biotech ideas with active risk management. Beats the XBI biotech ETF by 6% per year over two decades. A sleeve play, not a standalone strategy.
BioTech 10 is a specialty portfolio: a sector-concentrated ideas portfolio, not a standalone strategy. Volatility is roughly 2.5x the broad market (42% annualized vs ~15% for the S&P), and the worst peak-to-trough drawdown was -71.3% during the 2021-2023 biotech bear market — softened from -76.8% by the active risk management overlay that closes broken positions before they wipe a sleeve. Do not run this as your only portfolio. Best uses: a small sleeve inside a diversified plan, or a research watchlist for individual biotech names worth deeper study. Sector strategies require longer time horizons and higher tolerance for drawdowns than core portfolios.
Sector benchmark: XBI (SPDR S&P Biotech ETF). Biotech as a whole goes through long out-of-favor periods that have nothing to do with stock selection. Comparing to a broad-market index can flatter or punish the strategy depending on what biotech is doing as a sector. XBI is the equal-weighted biotech ETF and the right comparison for whether this strategy is adding value within its own sector.
BioTech 10 vs the biotech sector
Jan 2006 → Apr 2026Window aligned to XBI inception (Jan 1, 2006) so the three series share the same start date.
| Strategy | Cumulative | Annualized | $10K becomes |
|---|---|---|---|
| BioTech 10 | +2,278% | 16.95% | $238K |
| XBI (SPDR S&P Biotech ETF) | +771% | 11.25% | $87K |
| S&P 500 Total Return | +726% | 11.00% | $83K |
Backtested. Past performance does not guarantee future results. The sector ETF return is sourced from public market data; the portfolio return is the strategy's backtest over the same window.
Growth of $10,000
Data through April 27, 2026•Log scale
Year-by-Year Returns
Data through April 27, 2026
Annual returns vs S&P 500 TR. Green beats the benchmark, red trails it.
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Returns by Rebalance Period
Each row is a distinct holdings window. The current window is live and updates daily; historical windows are finalized once the next rebalance takes effect.
| Period | Dates | Days | Portfolio | S&P 500 TR | Alpha |
|---|---|---|---|---|---|
Current (from Q1 2026)Live | Feb 18, 2026 → May 6, 2026 | 77 | +7.5% | +1.3% | +6.1% |
Key Characteristics
- •10 high-conviction biotech names, equal-weighted at 10% each
- •Roughly 3x the wealth of the XBI biotech ETF since Jan 2006
- •+5.7% per year alpha vs XBI over a 20-year window
- •Twenty-plus year track record across biotech booms and busts
- •Quarterly rebalancing with active risk management discipline
- •Sector-concentrated by design: built for sleeve allocation, not standalone use
Rebalance Schedule
Coming SoonBioTech 10 rebalances four times a year, on the 20th to 25th of February, May, August, and November — anchored to the SEC 13F filing cycle so we can act on the latest institutional disclosures. Pro members get the trade list by email the moment we publish.
BioTech 10vs S&P 500
Sector weights as of 2026-05-04. Posture is one of several lenses we use to read a portfolio — never used in isolation.
Current Holdings
Full sector breakdown
Why we own these
The trophy room. Yes, this is cherry-picked. That is the point. The full record, including the picks that did not work, is on the Track Record page.
BioTech 10 Hall of Fame
The 10 biggest closed-position wins from this portfolio. Total returns include dividends, verified against YCharts.
These are closed positions ranked by total return percentage (price + dividends). Past performance does not guarantee future results.