Bellevue Healthcare Trust on "the worst relative performance for healthcare in 30 years"
Published: 10:44 15 Dec 2023 GMT
Bellevue Healthcare Trust PLC (LSE:BBH) co-portfolio manager Paul Major visits the Proactive London studio to speak with Thomas Warner about what he calls "the strangest year" in his career and "the worst relative performance for healthcare in 30 years."
He attributes the relatively poor performance of the sector to a series of negative macroeconomic and geopolitical events, including the collapse of Silicon Valley Bank, fluctuations in interest rates, and market overreaction to the advent of both AI and GLP-1 obesity drugs.
He believes the healthcare sector offers attractive growth at lower valuations compared to other markets, driven by consistent demand due to the inevitability of health issues. The interview also delved into the broader implications of healthcare investments in an uncertain economic climate.
Major positions healthcare is a defensive and intelligent choice, offering long-term growth regardless of economic conditions and also discusses the shift towards value-based care in the U.S., where healthcare providers are being incentivised to deliver positive patient outcomes, leading to more efficient resource allocation and better overall healthcare management.
Overall, Major's perspective offers a hopeful outlook for the healthcare sector in 2024, emphasising its resilience and growth potential amidst economic uncertainties.
