Hi it’s Flavio, welcome to our Chart of the Month Video. This time I will be talking about the benefits of active management in Healthcare.
There are 2 things I want to draw your attention to.
Firstly, there is a high level of dispersion across the sub-sectors in healthcare, giving active managers ample possibilities to create value.
In Pharma, over the past 10 years the top 5 stocks returned an average of 714%, while the poorest 5 stocks lost 83%. One
could say this is heavily biased by Novo Nordisk’s and Eli Lilly’s stellar performance, but it’s not, which brings me to the second point. The dispersion between leaders and laggards in the last decade is not limited to Pharma but is also significant across all other sub-sectors, from Medtech to Biotech.
Why is this? In our view, Healthcare is among the most complex sectors. We are at an interplay of constant need for innovation and the risk of failure, demographic and lifestyle shifts and regulatory changes.
Fortunately, these complexities offer daily opportunities for active managers with a fundamental investment approach. Additionally, we are convinced that many of the sector’s opportunities are not well reflected in healthcare indices.
Interested in learning more about the potential of active management in Healthcare? Then get in touch with us.
