Despite delivering positive returns, health care underperformed the broad market in the first half of the year. Portfolio Manager Andy Acker explains some of the reasons why – as well as why he is optimistic about the sector’s outlook.
- A market rotation into economically sensitive sectors weighed on some areas of health care earlier this year, as did concerns about potential drug pricing reform in the U.S.
- As a result, the sector now offers attractive valuations relative to the market.
- Meanwhile, innovation is accelerating, with new health care delivery models being rolled out and breakthroughs occurring in areas such as gene editing and precision oncology.