HBM Healthcare Investments - A stellar year to mark 20th anniversary

HBM Healthcare Investments (HBMN) has posted record returns in its 20th anniversary year, with NAV and share price total returns of 52% and 79% respectively in Swiss franc terms for the 12 months ended 31 March 2021, and net assets surpassing CHF2bn for the first time. The fund has evolved from a pure private equity focus to a public-private hybrid, with a large proportion (67%) of its listed portfolio made up of companies that began in the private portfolio but have continued to be held post IPO. Although near-term market conditions for listed healthcare and biotech look more challenging as ‘hot money’ flows out of the sector, HBMN’s science-led investment process and conservative valuation approach should help it build on its long-term record of success as it enters its third decade. A cash distribution of CHF9.50 (+23.4% y-o-y) is supplemented by a special CHF3.00 anniversary payout to reflect the strong FY21.