First Trust Mid Cap Growth AlphaDEX Fund Drops 2.29% on PTC Therapeutics Reversal
First Trust Mid Cap Growth AlphaDEX Fund shares dropped 2.29% after PTC Therapeutics withdrew its New Drug Application for Translarna, signaling weak efficacy data for the DMD therapy. The fund holds a 0.90% weighting in PTC Therapeutics, highlighting potential biotech headwinds for its mid-cap growth strategy.
1. Fund Performance Impact
Shares of the First Trust Mid Cap Growth AlphaDEX Fund declined 2.29% on the day following PTC Therapeutics’ withdrawal of its New Drug Application for Translarna, as investors reacted to the diminished prospects for the therapy.
2. PTC Therapeutics Weighting
PTC Therapeutics represents approximately 0.90% of the fund’s assets, making the setback for Translarna a material catalyst for the intraday drawdown given the stock’s mid-cap growth profile.
3. Sector Exposure and Strategy
FNY maintains a diversified mid-cap growth portfolio, with a significant tilt toward healthcare and technology; the latest biotech headwind underscores potential volatility in its sector allocations.
4. Outlook
Investors will monitor upcoming performance reports to assess whether this biotech development has lasting effects on the fund’s overall returns and risk profile.