Billionaires Are Buying These 2 Beaten-Down Stocks. Are They Smart Buys for Your Portfolio?

Group 1: Baker Brothers' Investment Strategy - The Baker brothers, Julian and Felix, made significant investments in biopharmaceutical stocks during Q1 2024, focusing on companies like AbCellera Biologics and Fate Therapeutics [1][2] - Their investment strategy involves acquiring large stakes, with a notable purchase of 4.6 million shares of AbCellera, increasing their total holdings to 27.5 million shares [3][4] Group 2: AbCellera Biologics - AbCellera Biologics partners with major pharmaceutical companies like Eli Lilly, Merck, and Pfizer, and is involved in 13 clinical-stage drug candidates [3] - The company has faced challenges as its primary source of royalty revenue has diminished, particularly after the FDA rescinded authorization for a COVID-19 treatment [4] - Despite financial difficulties, AbCellera has sufficient cash reserves to operate for several more years, making it a high-risk investment opportunity [4] Group 3: Fate Therapeutics - Fate Therapeutics is focused on developing stem-cell-derived immunotherapies and has seen a significant decline in market capitalization, down approximately 96% from its peak [5][6] - The company has initiated new clinical trials, including a phase 1 trial for lupus treatment and a collaboration with Ono Pharmaceuticals for HER2-positive tumors [6] - With a current market cap of around $480 million, positive trial results could lead to substantial stock price increases, but the investment remains high-risk [6]