The first facet of my strategy focuses on providing stability to this high beta sector by recommending 50% to 75% of an investor’s biotech portfolio is allocated to large cap growth at a reasonable price (GARP) stocks.

One advantage large cap biotech growth stocks have over large growth stocks in other sectors is they are less dependent on global demand levels and are less subject to the whims of the currency market given their ultra-high gross margins. In short, they have little worries due to currency fluctuations and global growth levels than other American multinationals such as McDonalds (NYSE: MCD). These are the type of stocks that are able to churn out revenue and earnings growth despite the challenging worldwide backdrop to the markets.

Simply put, having 50% to 75% of your biotech portfolio in these large cap growth names takes a lot of the volatility out of investing in this high beta sector. As an example, small cap biotech stocks are on the verge of their fifth 20% or greater correction since 2009. While the large cap biotech sector has yet to experience even one decline of that magnitude over that same time frame.

It is a great time to go shopping for these blue chip biotech companies right now. Myriad well known and respected names in this space are down 10% to 15% from where they were in early July before this latest bout of market turbulence hit equities.

A good place to start is with AbbVie (NYSE:ABBV), maker of Humira, which until this year was the number one drug on the market by global sales. It looks like the compound will be eclipsed this year by the hepatitis C blockbuster drugs Sovaldi and Harvoni from Gilead Sciences (NASDAQ: GILD). Humira still should provide some $14 billion or so worth of global revenues in 2015. Humira will start to come off patent late in 2016 but should not suffer the steep decline other blockbusters have seen after patent expiration as it is a biologic and harder to copy and manufacture.