Fund managers see exciting potential in healthcare

InvestorDaily

The healthcare sector has seen a number of tailwinds emerge in the last year that paint a favourable long-long term outlook, such as advancements in artificial intelligence (AI) and in GLP-1 agonists like Ozempic. Speaking on a recent episode of the Relative Return podcast, Pella Funds Management’s chief investment officer, Jordan Cvetanovski, outlined his optimism for healthcare, noting that it offers a number of strong opportunities.

“Where we’re focused is healthcare, we think there’s opportunities there,” Cvetanovski said, adding that the fund manager holds an almost 25 per cent allocation to the sector.

“We’ve got a large position. A fifth of the capital is invested in healthcare companies, and we’ve done really well selecting companies like Novo Nordisk. With Ozempic, it’s been a big thing in the news, but I’ve owned, in various funds, since the GFC.

“I remember when I bought [it], it was the most expensive company in Europe at 17x earnings. And people kept saying to me, ‘How can you buy this expensive business?’”

Cvetanovski said he believed in Novo Nordisk (Ozempic producer) at the time, a belief that has since been validated given the stock’s some sixtyfold growth since he first acquired it.