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

Key Takeaways

  • Health care’s non-cyclical industries, such as pharmaceuticals, helped the sector to outperform during a challenging first quarter.
  • But a yearlong 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 health care could shine near term.