As inflation troubles the market, one sector has consistently been resilient or has benefited: healthcare.
We are adding a diversified healthcare leader to the portfolio that has recently suffered a significant drawdown. The company used to be loved by the market and traded at a very healthy multiple. In fact, over the last 10 years, its valuation has consistently increased as investors were impressed by its performance.
We see catalysts ahead for a meaningful re-rating, alongside a potential shift in short-term sentiment toward healthcare. The last few weeks have shown that healthcare is gaining traction, and further news around higher interest rates could keep that momentum going. Healthcare has also been (almost) a safe haven for investors over the last 100 years, as shown in the chart below.
The company is larger than our typical small and mid-cap focus.
We intend to maintain this focus, as we believe smaller companies offer the best edge. However, we are not limited to this segment and will occasionally invest in larger companies when we see a clear market dislocation.
Table of Contents
Why Now?
Business Overview
Industry Outlook
Key Growth Drivers
Financials
Valuation & Price Target
Key Risks
Our Final Thoughts