The Healthcare model continued to perform well in September relative to my other models. Like all of the stocks and investments I follow, this model is also subject to the threats of the Fiscal Cliff, the crisis of Euro-based economies, the debt ceiling, and the uncertainty about the upcoming Presidential elections.
The huge changes involved with the Affordable Care Act (“Obamacare”) certainly affect the fortunes of many of the healthcare related companies and the uncertainty about whether implementation will continue, or whether politics will result in a retrenchment in the healthcare reform movement plays almost daily on the stock prices of these holdings.
During the month, I sold small parts of several of my strongest positions to enable me to add an additional holding and to diversify the model further. Portions of Align (ALGN), HMS Holdings (HMSY) and Schiff (SHF) and added a new position in Regeneron Pharmaceuticals (REGN) which unfortunately turned south shortly after the purchase and was sold at a small loss in the same month. I went ahead and started a position in Express Scripts (ESRX) later in the month and that too has been less than exciting in stock price performance but it remains as a holding to this date.
Healthcare remains an exciting field with new advances in technology and treatments and innovative solutions in delivering that care. Unfortunately, or perhaps I should say as is usual, it remains a political football in America.
I shall continue to work hard to identify opportunities for long-term price appreciation in this model yet remain committed to selling losing stocks quickly and completely, and gaining stocks slowly and partially. I expect significant volatility into year’s end with hopefully a more stable trading environment as all of the well-known challenges facing all of us seeking to find investing opportunities face today.
Some of the investments discussed are held in client accounts as of September 30, 2012. 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.
Certain of the information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. We believe that such statements, information, and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
