Navigating the biotech sector can be a complicated task many investors don't want to attempt. But, Bret Jensen knows his way around this market, leading him to gargantuan profits from his winners. Right now he sees these 2 companies as having the right goods to be winners in the market's hottest sector.

I have been increasing my exposure to the biotech sector recently as sentiment seems to be improving on this space. I particularly like the small cap biotech area at the current moment. Even with the recent improving performance most of the stocks in this sector are significantly below their highs from earlier in the year.

I also like the fact that this area of the market has absolutely nothing to do with the price of oil which has been a rollercoaster for investors lately. Below are two cash rich small cap biotech gems offering attractive risk/reward profiles right now.

Let's start with a small biotech firm called AVEO Pharmaceuticals (Nasdaq: AVEO). I've been accumulating a fairly large stake in this speculative play over the past two months. The stock has been an awful performer in the market over the past few years but now appears deeply oversold at less than $1 a share. In 2011, the shares went for north of $20 apiece. The stock basically trades for just over the net cash on its balance sheet.

There is good reason this biotech stock has become a black hole for its shareholders over the past few years. Trials for its lead product, tyrosine kinase inhibitor Tivozanib, have just not produced the results investors had been counting on. However, in November the company licensed this platform to Ophthotech (Nasdaq: OPHT) for the investigation into the potential treatment of non-oncologic diseases of the eye for a small upfront payment and with Ophthotech bearing the full development cost. If development is successful, AVEO Pharmaceuticals could eventually reap more in milestone payments than the current market capitalization of the stock.