BiQ: What is the BiQ Probation List?

I've had a few questions from BiQ members about the BiQ Probation List, so I thought I'd send out a quick note.

The BiQ Active Portfolio primarily consists of derisked companies, where, based on my research, I believe the long-term risk-reward ratio appears attractive. I follow these names very closely and try to evaluate each development to determine whether it strengthens or weakens the thesis. As long as the thesis continues to progress, regardless of whether the progress is reflected in the share price, the company will typically remain on the Active list. Biotech companies can be highly volatile, and movements in the share price very often don't reflect underlying progress. This is where we usually find the best opportunities.

However, if an event causes the thesis to become unclear, or if I no longer feel I have sufficient visibility into the company's future direction, I will usually move that company to the Probation List until I have more information. I continue to monitor Probation List companies very closely; however, I consider them to be higher risk until the thesis becomes clearer. Members are advised to practice extra caution with companies on the Probation List.

As new information becomes available, at some point I will either: A) move the company back to the Active list if the thesis strengthens, or B) remove the company from the BiQAP (BiQ Active Portfolio) if I believe the thesis is broken. While this approach may sound a little unconventional, it has worked very successfully for me to help me manage my own portfolio and to avoid entering and exiting positions at the wrong time.

I hope this explanation helps. Please feel free to reach out in BiQ Chat or the comments section below with any questions.

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Biotech iQ is not an investment professional, and nothing on this page or this website should be considered investment advice. Please consult with a licensed investment professional as necessary. Past performance is not indicative of future results.