Author: Bob Freedland
Covestor model: Healthcare
Disclosure: Long AMGN, LLY, ALXN, BIIB, HMSY, HSTM, MDCO, PRGO, SHF
My Covestor Healthcare model continues to perform well in this difficult market. This month I made a few trades to reconstitute the portfolio.
Amgen (AMGN), the premier biotechnology stock, was added to the model due to its underlying fundamental and technical strength. I bought and sold shares of Lilly (LLY) during the month, ending up with a small position.
Unfortunately, I lost patience with my Intuitive Surgical (ISRG) stock on profit-taking weakness and concerns that healthcare reform as well as less than enthusiastic reported results for prostate cancer surgery might dampen the company’s robotic surgical device sales. The stock rebounded (doesn’t it always seem that way?) without me. MWI Veterinary (MWIV) and Stericycle (SRCL) shares were sold during the month on technical weakness.
Towards the end of the month I revisited Walgreen (WAG) as the PBM arrangements with Express Scripts appeared to have been resolved. (Later in August I once again parted company with the drug store chain as the technical strength disappointed).
I manage the Healthcare Model with the same attentiveness as I do my Buy and Hold Value model on Covestor: watching closely to make sure that losses are limited, and looking for the strongest individual companies to hold on to!
At the end of the month some of the best performers in the model included Alexion Pharma (ALXN), Biogen Idec (BIIB), HMS Holdings (HMSY), HealthStream (HSTM), Medicines Co. (MDCO), Perrigo (PRGO) and Schiff (SHF).
I am optimistic that with continued effort, this model can continue to perform into the coming year. Of course, I shall stay on top of the holdings and shall continue to work to avoid growing losses and working to hang on to winners that produce growing gains.
