While some areas of the U.S. stock market are riding high on artificial intelligence, power generation and reshoring, the lagging health care sector looks appealing to Fidelity Portfolio Manager Chris Lin, particularly some biotechnology firms he feels have been unfairly penalized by a generally unfavorable outlook for the group under the current presidential administration.
“While they may not be generating attention-grabbing headlines like some other industries, I’m keeping a close watch on select pharmaceutical and biotech companies that have quietly driven innovation while addressing critical health challenges,” says Lin, who manages Fidelity® OTC Portfolio (FOCPX).
In helming the equity strategy since 2017, Lin invests primarily in dynamic growth companies listed on the Nasdaq stock exchange. In particular, he seeks firms with above-average earnings-growth potential and a sustainable business model, for which he believes the market has mispriced the rate and/or durability of growth.
By taking a contrarian approach in the health care sector, Lin tends to avoid chasing trends, focusing instead on resilient, innovative, high-quality companies that have been largely overlooked. In mid-2025, he gravitated toward several biotech stocks that seemed overly penalized despite maintaining strong business fundamentals. He was particularly bullish on recent research showing how vital regulation of the immune system is in treating a wide array of diseases.
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“If the immune system is in overdrive, it tends to lead to autoimmune conditions such as myasthenia gravis, asthma, multiple sclerosis and inflammatory bowel disorders,” Lin explains. “On the other hand, if is too weak, the result is often infection and potentially even cancer.”
Lin cites Dutch biotech firm argenx (ARGX) as revolutionizing treatment with its blockbuster drug Vyvgart®, an intravenously administered treatment for myasthenia gravis and other autoimmune diseases.
With sales of Vyvgart and its subcutaneous injection counterpart on the rise, Lin believes argenx has showcased its ability to successfully execute on its playbook.
“Furthermore, the company expects six registrational and six proof-of-concept readouts by the end of 2026, making it well-positioned to transform care for patients with high unmet needs,” he adds. Lin also highlights Legend Biotech (LEGN), a specialist in novel cell therapies for oncology that is committed to advancing cancer treatments.
When shares of the firm dropped in the months before and after the U.S. presidential election in November 2024, he saw a buying opportunity based on his view of Legend’s long-term potential.
“Investing in health care today isn’t about chasing trends, it’s about recognizing the resilience and innovation of high-quality companies that have been largely overlooked, while taking a targeted, opportunistic approach to investing in them,” concludes Lin.
For specific fund information, including full holdings, please click on the fund trading symbol above. Securities mentioned were fund investments as of January 31, 2026.
Chris Lin is a portfolio manager in the Equity division at Fidelity Investments.
In this role, Mr. Lin is manager of the Fidelity OTC Portfolio and the Fidelity OTC Commingled Pool. He also manages the Information Technology sleeves for several other funds.
Prior to assuming his current responsibilities, Mr. Lin served as a research analyst responsible for the coverage of large cap internet stocks and was also the Technology Equity Research Team Sector Leader. He also previously managed Fidelity Select Computers Portfolio and co-managed Fidelity Select Semiconductors Portfolio, Fidelity Advisor Semiconductors Fund, and Fidelity Stock Selector Mid Cap Fund. He also served as a research analyst and as a research associate covering biotechnology and other health care stocks. He has been in the investment management industry since joining Fidelity in 2002.
Mr. Lin earned his bachelor of arts degree, with honors, in economics from Harvard University.