Worldwide Healthcare Trust - Healthcare industry prospects are shining brightly

Worldwide Healthcare Trust (WWH) has two co-managers, Sven Borho and Trevor Polischuk, at global healthcare specialist OrbiMed. They are very optimistic about the fundamentals for the healthcare sector. The managers are encouraged by high levels of industry innovation, increased clarity around US drug pricing, which removes a long-term overhang, and the acceleration in M&A, which historically has been an important driver for the performance of healthcare stocks. WWH’s results have already benefited from the recent acquisitions of three of its biotech holdings at meaningful premiums to their pre-bid share prices, as pharma companies seek to bolster their revenues and pipelines ahead of an upcoming major patent cliff. The managers are particularly bullish on the prospects for emerging (smaller-cap) biotech stocks as these have experienced the worst and longest period of underperformance in their history. WWH has recently had a 10:1 share split to make the company more accessible for smaller investors.