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.
All figures are backtested → · benchmark: S&P 500 TR
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 15, 2026 | 86 | +4.8% | +2.3% | +2.4% |
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 in the model portfolio, ranked by total return percentage (price + dividends). Hypothetical, backtested performance based on the methodology applied to historical data. Members who execute the same trades may not achieve the same results due to timing, fees, taxes, and individual circumstances. Past performance does not guarantee future results.