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Growth company, operating in expanding field of biotechnology. Financials are believed to be growing according to Yahoo Finance's trailing twelve month numbers, but stock price has not reacted yet. Relatively low beta (0,79) Stock is believed to be undervalued (Yahoo Finance), so there could be returns available with low risk.
Vertex Pharmaceuticals inc. Short position Constructing our initial portfolio The firm's price has recently dropped close to its 52-week low so according to our 52-week high/low momentum investment strategy, we expect the firm to be decreasing in value further in the near future due to the negative momentum it is experiencing. (Aiming for 1.8 leverage ratio)
Short position with this company is suitable with the investment strategy of the fund as it has been in bottom 20 performers among S&P500 companies during the past six months. This transaction facilitates reaching an investment portfolio with equal weights between holdings.
Our investment strategy is passive investing. The portfolio follows Nasdaq 100 index, choosing stocks with highest EPS ratios and low price-to-book ratios compared to stocks with similar EPS ratio. This stock offers relatively high returns with low P/B ratio. The initial positions are equally weighted so $100k is allocated to this stock.