Portfolio Manager Andy Acker discusses healthcare’s first-quarter performance and why the sector could offer both defence against market volatility and opportunities for long-term gains.

Key takeaways

  • Healthcare’s non-cyclical industries, such as pharmaceuticals, helped the sector to outperform during a challenging first quarter.
  • But a year long sell-off in small- and mid-cap biotech stocks continued as investors worried about rising interest rates.
  • In our view, depressed valuations and accelerating innovation make biotech particularly attractive for long-term investors, while other areas of healthcare could shine near term.