Why this £2.3bn trust has put almost half its assets in five stocks

Alice Rigby
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The manager of a table-topping biotechnology trust has said careful use of the closed-ended structure has enabled him to outperform, including holding half of his assets in just five stocks.

Daniel Koller, who leads the management team for the BB Biotech trust, said that the independence of the closed-ended structure allowed him to take significant positions of 10% or more in selected stocks. "We have investment flexibility as we have internal guidelines that come from the board. That allows us to concentrate on our winners over time and operate a "private equity in the public sector" model. "For example, with a company called Isis Pharmaceuticals we wanted to buy 5%-10% of the company's capital." "We bought the position and the stock rallied tenfold but we were not ob...

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