Author: Bob Freedland
Covestor model: Healthcare
The Healthcare Model on Covestor that I manage continues to have an improving performance record as I believe we are settling into stocks that are showing longer-term strength.
Some of the changes during the month include the addition of Align Technologies (ALGN) to the portfolio–the maker of the ‘Invisalign’ retainer system that many dentists are offering.
Catamaran Corporation (CTRX) was cut from this portfolio due to weak price performance. McKesson (MCK), the pharmaceutical distributor, was also cut from the model after the stock headed lower.
New stocks including returning Lilly (LLY) the major pharmaceutical company to the portfolio, and adding Idexx Laboratories (IDXX) to the model.
Some of the stocks that are in the portfolio that are showing strength include Alexion (ALXN), Biogen Idec (BIIB), Healthstream (HSTM) and Schiff (SHF).
I am very satisfied with the recent performance of the holdings in this Healthcare model. I continue to watch for any weakness and to identify new stocks that can be added or replaced in this model.
Certainly, the results of the November presidential election will need to be considered as Republicans appear committed to repealing and replacing the Affordable Care Act (Obamacare), while Democrats if elected will likely oversee the further implementation of health care reform which will bring many millions of new patients and an array of new regulations into this important part of our country’s and the world’s economy.
Disclosure: The investments discussed are held in client accounts as of August 31. These investments may or may not be currently held in client accounts.The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.
Performance discussed is net of advisory fees. Also, any investments discussed in this presentation are for illustrative purposes only and there is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments are presented for discussion purposes only and are not a reliable indicator of the performance or investment profile of any composite or client account. Further, the reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.
