Outside the Biotech Bubble

Healthcare stocks, particularly biotechnology stocks, have been one of the strongest sectors during the past five years. In fact, the biotechnology weight within the Russell Microcap Index has nearly doubled. Before you get too excited about the space, consider the valuations of biotech stocks.

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Diversification does not assure a profit nor protect against loss in a declining market.

Past performance is not a guarantee of future results.  Index performance is not indicative of Fund performance.  Current standardized performance of the Fund and performance data to the most recent month end may be obtained by clicking here.  It is not possible to invest directly in an index.

Earnings growth is not representative of the fund’s future performance.

According to Capital IQ, biotechnology weight within the Russell Microcap Index has nearly doubled.

As of November 30, 2015, The Perritt Ultra MicroCap Fund held a 1.35% position in DLH Holdings (DLHC).  Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market.

IBB – ishares NASDAQ Biotechnology Index is an exchange-traded fund (ETF).  The Fund seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index.  (Growth Sector chart 12/2010-12/2015.)

EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization is an indicator of a company’s financial performance.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future of events, a guarantee of future results, nor investment advice.

Perritt Capital Management is the adviser to The Perritt Funds.

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