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BPIQ Model Portfolios Continue to Crush Biotech Benchmarks

  • Jun 1
  • 3 min read

Summary

Since 2023, BPIQ model portfolios built around biopharma hedge fund consensus holdings have consistently and significantly outperformed the biotech benchmarks XBI and IBB.


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Background

After extensive back-testing to find to identify the best strategies for using consensus holdings of top institutional investors to consistently beat the biotech benchmarks, we launched our first consensus-based portfolio (Top 20s) on 4/1/2023. By 9/30/2023, we applied the hedge fund favorites framework across the rest of the lineup. Over time, we continue to refine our strategies to provide more options in terms of the number of companies (e.g., about 10, 15, or 20) and the those that are focus more on max pre-tax vs. max post-tax returns. Consistent with our extensive back-testing, all of our portfolios have significantly and consistently outperformed the biotech benchmarks, XBI and IBB, whether in 1 year or 2.5 year time horizons.


Results

Figure 1: Since 9/30/2023

  • Takeaway: Since 9/30/23 every BPIQ portfolio outperformed XBI and IBB.

    • ~1.4×–2.6× XBI and ~3.1×–5.4× IBB.

    • Three portfolios delivered more than double the return of XBI, while Top 50 and Run-Up generated more than 5× the return of IBB.

Figure 2: Since 12/31/2023


  • Takeaway: Since 12/31/23 every BPIQ portfolio outperformed XBI and IBB.

    • Every portfolio generated at least 95% returns while delivering roughly 1.8×–2.9× XBI and nearly 3.6×–5.7× IBB.

Figure 3: Since 12/31/2024

  • Takeaway: Since 12/31/24 every BPIQ portfolio outperformed XBI and IBB.

    • ~1.3×–2.2× XBI and ~2.2×–3.7× IBB

    • Top 10A produced more than 200% of XBI's return

Figure 4: Calendar Year 2024

  • Takeaway: Even during 2024, a flat/slightly down biotech stock year, every BPIQ portfolio yielded a positive return. In 2024, while XBI gained less than 1% and IBB declined, all five BPIQ portfolios delivered positive returns, and 4 of 5 delivered double-digit returns.

Want access to our portfolio holdings and other portfolios' info/tools to help you make better biopharma investment decisions? Sign up for Elite or APEX today?

What this means

Our hedge fund favorites framework has continued to work across different start dates and market environments, and the effect remains broad-based, with multiple portfolios outperforming both benchmarks across every measurement period shown above.

The results also demonstrate that different portfolio constructions can produce different return profiles while still benefiting from the same underlying hedge fund consensus approach.



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Footnotes & methodology

  1. Returns are unaudited and taken from brokerage accounts that mirror the model tickers/targets as of 11/21/25.

  2. Returns shown are Time-Weighted Returns (TWR) using chain-linked Modified Dietz, which adjusts for both the magnitude and timing of external cash flows (e.g., 4/1/2024 withdrawals) and is consistent with the GIPS® principle of time-weighted reporting. GIPS+2Wikipedia+2

  3. Results as of 5/31/2026. Past performance is not a guarantee of future results


5/29/26 Article posted EJV/MD/AV


This article is not investment, legal or tax advice. Investing in smid-cap biopharma stocks is risky. Past stock performance does not guarantee future performance. This post is not investment advice. Please do your own diligence and consult a financial professional before making any stock investment decisions.


 
 
 

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