Politics aside, 2020 could be a good year for bringing back generalists

After largely being out of biotech stocks for four years, generalist investors have shown signs that they are ready to dip their toes again in 2020. The fourth quarter surge, and a spate of 2019 M&A deals, has put biotech back on the FOMO list, particularly regarding large cap biotechs, which are at their most attractive valuations in a decade.

Of course, the elections are the overhang. But they are what they are, and while high on every buysider’s risk list, there’s a feeling generalists might weather the uncertainty, since more conservative drug prices have already been baked into valuations...