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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (6560)	6/12/2002 3:20:46 PM
From: Ian@SI	Respond to of 52153

Well, now that we're into conspiracies, do you think that BMY set up Waksal with the insider information, then reported him to both the SEC and the AG just to get even with him for taking their $2B without full disclosure? <vbg>

To: Elmer who wrote (6560)	6/12/2002 3:41:19 PM
From: Biomaven	Read Replies (1) \| Respond to of 52153

David, It could be argued that part of the reason for the market bubble of 2000 was that the hedge funds bet against the dot.coms and biotechs too early and retired from the field in disarray. If they had been stronger, they might have prevented the worst excesses of the bubble. (Of course in 2000 I was admittedly cheering their demise in the case of the biotechs). I don't think their activities represent any real threat to long-term capital formation at all. As for their short-term trading activity not contributing to capital formation, the same can be said of the day-traders and many other short-term traders. In any case, even if it was possible to regulate the hedge funds, it's just not going to happen. Peter

To: Elmer who wrote (6560)	6/12/2002 4:22:55 PM
From: Michael Young	Respond to of 52153

It is too simplistic to characterize hedge funds in such a narrow manner. It is true that many are devoted to short term trading. But, by necessity, the larger funds must take long term positions backed by proprietary research. Many of the healthcare hedgies take large positions in favored bios with the expectation of holding a very long time. Of course they also trade around these positions at times to take advantage of volatility. Most hedge funds have significantly outperformed the big mutual funds over the past few years. Although 2002 has been a bitch for just about everybody. MIKE