We attended the Jefferies Healthcare Conference 2017 from June 6, to June 9 in New York City.
After a complicated 2016, the healthcare investment year 2017 so far has a lot to like. With the strong performance across the sector (YTD > 10%) and especially across subsectors like Medtech, Healthcare Services and Life Sciences Tools and Services (each YTD >20%) the conversations changed completely from last year’s “will the market ever recover? ” to today’s “how much longer can this healthcare bull market last? “.
The MSCI World Healthcare NR Index gained 3.0% in June, while the MSCI World NR Index rose 1.5%. The decline in 10-year yields provided a booster shot to growth stocks, relative to their value peers. It is likely that the next months will continue to be dominated by debates on Fed and interest rates topics, and related growth/value factor pivots. More clarity on tapering can be expected after the summer break and the Jackson Hole summit.
Kieger AG is a main sponsor of the ”Swiss Sustainable Investment Market Study 2021”. This sponsored page by our Kieger Healthcare Portfolio Managers Urban Fritsche and Dr. Maria Specogna discusses: “Covid-19: a trigger for impact investors in global healthcare”.
In May, Healthcare gained 2.1%, while Global Equities rose 1.6%. The shift into value at the expense of growth and momentum continued over the past weeks, with Energy, Financials and Materials posting the top performances. IT returns, given the sector’s growth characteristics, were again subdued.