Over the weekend John Paulson announced he was starting a Healthcare fund.

Like Krieiger, the former Bankers Trust trader, who made a fortune shorting the Pound in 1992, the follow up trades were less than stellar.

Paulson started a Gold Fund when Gold was trading around $1,800/ounce. Funds like Tudor took the other side.

IBB has run from a 57 low in 2008 to a lofty 385 last week. All this does is give me pause when a big player seems it’s a good time to hop on the bandwagon.

He’ll be buying names after a very significant run. Bargains will be few and far between.

I’m not getting any younger and Biotech is still the land of opportunity, however

it’s time to be very selective with the names you invest in as well as the levels you use for risk management.