- Advertisement -
- Advertisement -

February brought more bitter pills for Rhenman Healthcare

- Advertisement -

Vienna (HedgeNordic) – Rhenman Healthcare Equity L/S Fund, the global long-biased equity fund with an exclusive focus on health care, reported that the Fund’s main share class, IC1 (EUR) was down by 5.4% in February after a volatile month for global stock markets.  The global equity index was down down by 1%, while healthcare was  down by 1.5% and biotechnology down by 5%. Februarys slip followed a drawdown of 18.5% in January for the fund.

The Fund, which ‘soft closed’ at the end of 2015, reported that investors and the sector have been challenged due to uncertainties related to the US presidential primaries and the possible impact of a new president of either party on the healthcare market. Strong market reactions in February were also a sign of investors’ risk aversion and fears of deflation, amid additional concerns related to the banking system and other international developments. Consequently, relatively few shares rose on company results, with many falling, even when their reported profits were in line with expectations. February’s best contributors were pharma company Meda and biotech companies Biomarin and Gilead, with the worst being specialty pharma companies Endo and Perrigo and biotech company Regeneron.

Rhenman Healthcare, which has an annualized return of 19% (net) since its inception in June 2009, nevertheless believes that despite market volatility, a recovery has begun for the sector, among other things due to attractive valuations, the lack of market excesses and a slowdown in emerging markets. The Fund continues to prioritize companies less affected by political developments in the US to reduce its net exposure. It also remains convinced that the commercial structure of the American healthcare and pharmaceutical industry will not change significantly, as the P/E ration for the sector is about 16, in line with the global index – a valuation that remains attractive to the long-term investor.

 

Picture: (c) SUWIT-NGAOKAEW—shutterstock.com

close

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

January: Mirror Image of 2022 for Nordic CTAs

Stockholm (HedgeNordic) – The average return of the eight “CTA” constituents of the Nordic Hedge Index that had positive performance in 2022 was 14.4...

Did Energy Prices Cause This Inflation Surge?

Copenhagen – (Jesper Rangvid): You often hear that soaring energy prices, caused by supply-chain disruptions resulting from the pandemic and the war in Ukraine,...

UB Launches Forest-Focused PE Fund

Stockholm (HedgeNordic) – United Bankers is launching a private equity fund investing in forest and bio-based industries. The fund, named UB Forest Industry Green...

Origo’s First Ten Years on (a) Quest

Stockholm (HedgeNordic) – Long/short equity fund Origo Quest is celebrating ten years of bargain hunting in the universe of Nordic small-cap stocks. After a...

The Cycle is Back and so is Active Investing

Stockholm (HedgeNordic) – The relationship between equities and bonds has traditionally been inverse, making bonds a leading choice as a diversifier to an equities...

Alcur’s Third Win in a Row

Stockholm (HedgeNordic) – Alcur Fonder’s first hedge fund, Alcur, has been named “Hedge Fund of the Year” by Swedish business magazine Privata Affärer for...

Latest

Most Popular This Week

Voices

Request for Proposal

- Advertisement -