Worldwide Healthcare Trust (LON:WWH) has a track record of more than 20 years of investing in the healthcare sector. A change to its mandate six years ago has seen it expand its remit from pharmaceuticals and biotechnology to the whole healthcare sector.
While the core of the portfolio is invested in US stocks, WWH is differentiated from the majority of peers by its c 15% weighting in emerging markets. The trust has substantially outperformed its benchmarks over three, five and 10 years and benefits from the stable management of manager Sam Isaly, a founding partner of specialist healthcare investment manager OrbiMed.
The discount to NAV of c 7% is wider than long-term averages, suggesting potential to narrow from here.
Investment strategy: Diversified global portfolio
WWH’s portfolio is managed by Sam Isaly at specialist healthcare manager OrbiMed, based in the US but with offices around the world. Isaly selects stocks from any healthcare sector and any geography, with input from OrbiMed’s team of c 100 investment professionals, many of whom have life sciences backgrounds. Potential holdings are rigorously assessed on a clinical as well as a financial basis.
There is a tilt towards large caps (60%+ is in companies with market caps above $5bn) but an allocation of at least 20% to smaller companies ensures diversification.
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