Why is Healthcare stocks up in the wake of ObamaCare?

[Macamus Prime]

I don't think that word means what you think it means...

Corporatism maybe.

Corporatism/corportationalist, etc fall under capitalism.

Most, if not then all, capitalist practices come from exploiting and harming someone or something.

I have yet to come across an example of a small-medium / medium / medium-large / large capitalistic practice or venture that has NOT exploited or harmed someone or something to make money.

Small capitalistic practices (eBay for example) are pretty harmless and "avoidable". Most of the shit this country is know for making money lies and manipulates people.

 

[mshan]

-> http://quote.morningstar.com/fund/f.aspx?t=prhsx (category Morningstar puts that fund into is up 4.73% YTD through yesterday)

-> http://portfolios.morningstar.com/fund/holdings?t=PRHSX&region=USA&culture=en-us (top 25 holdings with ytd performance; your fund manager has several holdings that have done really, really well this year and probably account for the outperformance)




(BTW, if you are primarily a mutual fund investor, I highly recommend paying for the premium membership at Morningstar. Excellent analyst reports of mutual funds; I don't invest in individual stocks so really can't comment on their individual stock analyst reports). I posted their analyst's 9/2/11 report, but can't copy and paste any others since Morningstar obviously wants people, like me, to pay for their premium subscription:

"T. Rowe Price Health Sciences capably wields its double-edged sword.

In contrast to his health-care-fund rivals, who mainly favor larger names, manager Kris Jenner has long gravitated to smaller fry. With broad product portfolios and already-giant revenue bases, one successful drug often barely moves big firms' bottom lines. For smaller names, the opposite is the case. One hit drug has a major impact. And they frequently address smaller markets and diseases the major players ignore. The companies can charge steep price tags because there aren't many or, in some cases, any alternative treatments, leading to fat profit margins.

Top holding Alexion Pharmaceuticals ALXN fits this profile. The company has just one marketable drug, recently approved Solaris, which treats a rare genetic blood disease. The drug's early success has pushed Alexion into the black, leading to handsome stock gains in 2010 and 2011. Jenner is apt to hang onto winners so long as their prospects remain strong, as is the case here. He expects revenues to double to $1 billion in three years.

Jenner's smaller-cap tilt has drawbacks. Because investors tend to favor the stabler behemoths in tough markets, the fund is especially vulnerable in downturns. And with at most a handful of marketable treatments, smaller firms also face more business risk. An adverse ruling from the FDA can send their share prices reeling.

Jenner hasn't been able to sidestep the risks of a down market. The fund landed in its group's bottom quartile in 2008, for example, sliding 28%. But Jenner has been adept in identifying health firms with big opportunities. That's allowed the fund to rebound nicely from downturns and to thrive in up markets. In the past decade, the fund's annualized gain of 7.8% places near the top of the health-care heap. Skilled management makes this fund a top-rate health-care investment."


(you can get 14 day free Morningstar Premium membership trial here: http://members.morningstar.com/mk/t...referid=a3009&vurl=http://www.morningstar.com)

 

[Acanthus]

because everyone is now required to have insurance.

This, 30% more people with insurance = 30% more incoming revenue streams.

 

[JEDI]

-> http://quote.morningstar.com/fund/f.aspx?t=prhsx (category Morningstar puts that fund into is up 4.73% YTD through yesterday)

-> http://portfolios.morningstar.com/fund/holdings?t=PRHSX&region=USA&culture=en-us (top 25 holdings with ytd performance; your fund manager has several holdings that have done really, really well this year and probably account for the outperformance)

(BTW, if you are primarily a mutual fund investor, I highly recommend paying for the premium membership at Morningstar. Excellent analyst reports of mutual funds; I don't invest in individual stocks so really can't comment on their individual stock analyst reports). I posted their analyst's 9/2/11 report, but can't copy and paste any others since Morningstar obviously wants people, like me, to pay for their premium subscription:

healthcare category is up 4.12% ytd as of 12/2/11. fund it self is up 8.85%.
where did 4.73% come from?

wowzers on the fund manager's picks:
12 of the top25 holdings by weight are double digit gains, with 5 of them 60%+ and the best at almost +500%

edit:
fund owns 8.2% of alexion? thought a fund cant exceed 5% for any one comapny in it's portfolio?

 

[mshan]

Your fund is outperforming it's Morningstar defined category (health care mutual funds?) by 4.73% ytd through yesterday.

I haven't dug through the nuts and bolts of your fund, but quick glance at portfolio holdings (number of stocks and typical concentration) seems to indicate it invests in a lot of stocks (high growth, potentially speculative stocks that have higher risk of boom or bust vs. more well established, slower growing large caps?; look up VGHCX) and you are seeing best portfolio winners at top of top 25 holdings (negative sign next to that one holding you mentioned indicates portfolio manager has been trimming that holding, presumably taking profits and redeploying capital elsewhere).

I think 5% number you are referring to might be 5% holding of all outstanding stock of any given company, which might require some sort of public sec disclosure.

 

[JEDI]

Your fund is outperforming category by 4.73% ytd through yesterday (Morningstar's health care category or something like that).

I haven't dug through nuts and bolts of that fund, but it kind of looks like it holds a lot of stocks and those winners that have worked their way up to top of top 25 holdings have just outperformed and are being trimmed by by manager, as indicated by the negative sign next to portfolio holding.

I think 5% number you are referring to might be 5% holding of all outstanding stock of any given company, which might require some sort of public sec disclosure.

i got lucky and bought this fund in jan 2009 after the beating it took in 2008 (-5% vs category).

i got stupid lucky and didnt divest from it in jan 2011 to make room for Wellington (Vanguard).

keep this fund for 2012???
if the market is positive in 2012, this fund will outperform. if it's negative, this fund will nose dive worse than the rest.

how does the market usually do when a sitting president runs for re-election?

 

[mshan]

"keep this fund for 2012???"

Honestly, only you can answer that.


As a starting point, I'd recommend the following reading, so you can step back, take a look at your own long-term investing goals, your tolerance for risk / temporary fluctuations in price, and how each individual investment fits into an overall portfolio that makes sense for your investing temperament and your short-term trading (Jim Cramer type Mad Money) and / or long-term investing goals (i. e. money that you will actually need to live on in retirement and needs to grow enough to at least offset some of the ravages of inflation during those years).

http://selectedfunds.com/downloads/SFSuccInv1210.pdf

http://www.amazon.com/Personal-Finan...3122561&sr=8-1
http://www.amazon.com/Mutual-Dummies...3122593&sr=1-1 (probably some overlap with above book)

http://www.amazon.com/Common-Sense-M...tt_at_ep_dpt_2


Knowledge is power (you can hire a fee only financial advisor who will ask questions and give you a risk tolerance quiz, but ultimately they are just making an educated guess about what you would really do with your own investments when the sh*t truly hits the fan in the markets), and truly understanding the fundamentals of personal finance and long-term investing in mutual funds will make you a strong hand who won't get easily shaken out of the market from what, in retrospect, again and as usual, just ends up being short-term market noise (if your true time horizon for investing is decades, not days, weeks, months, or even a few years...)

 

[werepossum]

Corporatism/corportationalist, etc fall under capitalism.

Most, if not then all, capitalist practices come from exploiting and harming someone or something.

I have yet to come across an example of a small-medium / medium / medium-large / large capitalistic practice or venture that has NOT exploited or harmed someone or something to make money.

Small capitalistic practices (eBay for example) are pretty harmless and "avoidable". Most of the shit this country is know for making money lies and manipulates people.

That may well be the most stupid thing said on the Internet this week. Congrats!

Let me invite you to emigrate to Cuba or North Korea or Venezuela, where you can escape all that harm and exploitation.