Ticker Take

Biotech stocks can be volatile, even in a bull market. So how do investors avoid the traps? Eden Rahim of Next Edge Capital says the secret is owning companies far along in drug development. Rahim estimates roughly 40 of the companies he's invested in have been acquired, including three he shared with us last year (like Crinetics, which Vertex agreed to buy for $10 billion). He breaks down his playbook for avoiding blowups and reveals 6 biotech stocks he likes now.