Worldwide Healthcare Trust Plc (LON:WWH) is managed by Sven Borho and Trevor Polischuk, of OrbiMed, one of the world’s leading specialist healthcare investors. The managers are very excited about the prospects for the global healthcare sector for the balance of the year. The threat of regulated drug pricing in the US is abating and the sector is experiencing a period of high innovation, which could lead to the launch of therapies with multi-billion-dollar sales potential. Within the key US market, the regulatory environment is supportive in terms of bringing new products to market, share price valuations are low versus history, and there is a likelihood of increased merger and acquisition (M&A) activity following US tax reform. WWH has a very strong, long-term investment track record. From inception in 1995 until the end of FY18, its average NAV total returns of 15.8% pa are significantly ahead of the benchmark’s average total returns of 11.6% pa.
Investment strategy: Robust, long-standing approach
Borho, Polischuk and the OrbiMed investment team conduct thorough fundamental research, which includes analysis of clinical and regulatory events, management meetings and field research. The resulting global portfolio is constructed from a universe of c 1,000 stocks and is diversified by sector, geography and market cap. All holdings are regularly discussed as part of OrbiMed’s public equity portfolio review (PEPR), a strategy that has been in place since 2009. Gearing of up to 20% of net assets is permitted; at the end of June 2018 net gearing was 10.0%.
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