Net outflows from the biotechnology sector continued this week, with roughly $550 million leaving healthcare and biotech funds for the week ended Wednesday, Piper Sandler analysts highlighted in a note.
This number translates to a 0.48% reduction in assets.
Outflows mark the fourth week of funds exodus in the past six weeks for the sector, with year-to-date net fund flows now amounting to about $2 billion in outflows.
Meanwhile, the "All Equities" category also experienced net outflows for the first time in six weeks, indicating a 0.03% decrease in assets during the same weekly period.
“As we see it, this is a key dynamic to monitor as periods of net inflows historically correspond with biotech outperformance while periods of net outflows typically correspond with sector underperformance,” analysts at Piper Sandler said.
“This week's data point encompasses 126 funds (including ETFs) with ~$111B in assets,” they pointed out.