Dear Fellow Physicians,
You’ve heard the timeless investing mantra: “Buy low, sell high.” It’s deceptively simple—yet most investors, even highly trained professionals like you, end up doing precisely the opposite.
Why? Because fear is the most powerful emotion in markets.When a stock (or an entire sector) is spiraling lower, fear screams that it will go to zero.
When the same stock is rocketing higher, the Fear Of Missing Out (FOMO) takes over and convinces you that “this time is different.” The result? You buy high and sell low—exactly backward.
This year provided a textbook example in biotechnology.
The Setup: Biotech in the Summer Doldrums
For much of the first half of 2025, biotech stocks were in a steep downtrend. Sentiment was abysmal. Valuations compressed to levels not seen since the 2022 bear market.
During that period, our integrated bioscience-focused strategy was already up roughly 10% YTD, and our cumulative return since inception (just over one year) stood at approximately 50%.
Yet paradoxically, that was exactly when interest in our fund dried up. Physicians and other high-net-worth investors—who had been enthusiastic when markets were calm—suddenly went quiet. The same fear that was crushing share prices was also crushing conviction.
Summer arrived, and the sector fell even further. That, my friends, was the textbook “buy low” moment.
The Payoff: Q3 and Beyond
Fast-forward to the third and fourth quarters. Biotech staged a powerful rally—driven by improving macro conditions, renewed M&A activity, and clinical data readouts that reminded the market why this sector exists in the first place.
One of our larger telemedicine growth positions delivered a painful drawdown (even the best strategies have losers), but several other holdings turned into substantial winners.
The portfolio’s asymmetric upside did its job. As of this writing (late November 2025):
- Gross profits since inception: >87%
- 2025 YTD return: >26.5%
We are now enjoying the strongest absolute and risk-adjusted gains in the fund’s young history—precisely because we leaned in when others leaned away.
Peter Lynch’s Timeless Insight: “Nobody Ever Got Fired for Buying IBM”
Legendary investor Peter Lynch famously highlighted one of the greatest structural advantages individual investors (like physicians) have over Wall Street professionals.The old Wall Street maxim—“Nobody ever got fired for buying IBM”—perfectly captures the professional money manager’s dilemma:
- Recommending a giant, universally owned blue-chip like Johnson & Johnson, Eli Lilly, or yes, classic IBM, is always defensible. If it underperforms, the advisor can shrug and say, “Everyone owns it. It was the prudent choice.”
- Recommending a small, underfollowed biotech or an emerging specialist fund? That’s career suicide if it goes wrong—even if the upside was 10x or 20x.
Professionals are paid first to keep their jobs, second to beat the market. Reputation protection trumps alpha creation almost every time.
That’s why most advisors steer you toward the same crowded, “safe” large caps—stocks that rarely deliver true wealth-changing returns. The game is rigged toward mediocrity, not excellence.
As Lynch repeatedly pointed out, this dynamic hands savvy individual investors an enormous edge: you have no clients to lose, no benchmark to hug, and no career risk for being early or unconventional. You can buy the next Amgen when it’s still a $200 million market-cap unknown—something a $50 billion institution literally cannot do without moving the price 10%.
The Physician Advantage
You already possess three superpower traits most investors lack:
- A deep understanding of biology and medicine that lets you separate signal from noise in clinical data.
- A high income that gives you the greatest luxury in markets—the ability to be greedy when others are fearful—without jeopardizing your lifestyle.
- Freedom from the career-risk handcuffs that paralyze most professional managers.
Combine those with a disciplined, integrated bioscience investment approach, and alpha isn’t just possible—it becomes probable.
Final Thought
All investing involves risk. Not every position will work. But in a properly constructed portfolio, a few big winners more than offset the losers—provided you have the courage to buy them when they are universally unpopular and deeply discounted.
The biggest risk is not taking any risk at all and resigning yourself to the mediocrity of crowded, “safe” large caps.
Unicorns are never found on the well-worn path.
If you missed out on the run in Q3 and early Q4 , there is still time because most biotech appreciation occurs in the Winter months. At our physician-led emerging biotech hedge fund, we’re super long-term oriented so there is much more upsides in the coming year.
You can check out our Fund Presentation below:
To your health, retirement, and superior returns,
Harvey Tran, MD | Chief Investment Officer, Evergrowth BioHealthcare Capital
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Check out our Fund Presentation and our Skool Community Page.
Disclaimer: This blog is for educational and informational purposes only. It’s not a recommendation to buy, sell, or hold any stock. Always consult your investment advisor and do your due diligence before investing. In working smarter rather than harder, I wrote an initial draft based on my knowledge, experience, and insight. I then leverage AI to put the information together into this presentable format.
More Reads for You:
- An Integrated BioSci Investing Approach for Alpha Returns
- Welcoming Dr. Victoria Mondloch to the Evergrowth Medical Advisory Board
- Stop Trading Stocks, Start Owning Businesses
- The Case for Long-Term Biotech Investing: My Story with Jazz Pharmaceuticals
- Red Flags to Spot Pump-and-Dump Schemes: Protect Your Wealth, Docs
- Overcoming Fear in Biotech Investing: How to Thrive Amid Volatility
