Biotech no lifesaver,as five pull the plug


Managers hope a new FDA chief and more drug approvals will provide a much-needed turnaround

Drug and biotech companies may be on the hunt for lifesaving cures, but until very recently, they have been bitter medicine for hedge fund managers. In fact, at least five biotech-driven hedge funds have pulled the plug this year, the latest being Caxton Health Care Trading, a $417 million fund that decided to close its doors last month after netting 1.46% annual returns since it opened nearly two years ago.

Reflecting the malaise of other equity investors, many biotech funds