More than 70% of funds underperform their benchmark every year. It's pathetic. On average, an actively managed fund returns 2% less (after fees) than the index it's measured against. A $100,000 portfolio that compounds 10% per year will grow to $1.7 million in 30 years. The fund with a 2% drag? Just $1 million. That's a $700,000 difference. Mutual funds disappoint for several reasons... For starters, the compensation structure is flawed. Mutual fund managers get a slice of your investment (typically 1%-2%) every year, no matter how they perform. Because they're paid based on total assets under management, not performance, managers shift focus from returns to fundraising. More important, mutual fund regulations meant to protect investors actually make matters worse. For example, some rules mandate diversification.[More...]

v  Each week I track which stocks are moving in and out of the top 25 Magic Formula Stocks for companies with a minimum market cap of 50 and 2000 million. Here are the moves for the week ended 3-07-09: Top 25/50 Million: In: CTC Media, Inc. (CTCM) ClickSoftware Technologies, Ltd. (CKSW) The Corporate Executive Board Co. (EXBD) EMCOR Group, Inc. [...]

by H.S. Ayoub, DMD
BioHealth Investor



QLT Inc. ( QLTI) up 41.63%... The FDA has completed its review the company's labeling supplement (sNDA) for Aczone(TM) and has removed certain requirements imposed earlier. Aczone is the only acne treatment to use the potential of dapsone in a topical formulation.

Nuvelo ( NUVO) down 26.47% aftermarket 4:40pm... the biotech company released more failed phase 2 results of its blood thinner alfimeprase, following two failed studies in 2006. The company will restructure and lay off 40 employees to redirect resources for other programs. Nuvelo is headed to a long stay in pennyland!

Cardiome Pharma ( CRME) up 30.61%... the Canadian drug maker released positive phase 2b results of an oral version of its atrial fibrillation drug Vernakalant. The 500mg dose was found to be statistically safer and more efficient than a placebo. An Oppenheimer analyst suggested that the market for such a drug is worth at least $500 million. The company hired Merril Lynch to conduct review of partnership offers from various pharmaceutical companies.

RXi Pharmaceuticals ( RXII) down 28.49%... the RNAi technology company continues its erratic Wall Street debut. On March 12 the company IPO opened at $6, quickly jumped to a high of almost $24, before declining to Monday's closing price of $7.58.



Monday's Top Medical & Biotech Stocks
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The tiny Vancouver-based biopharmaceutical company QLT (QLTI) appears to be spinning out of control.