https://seekingalpha.com/news/4525915-top-healthcare-revenue-stocks-as-hedge-funds-sell-tech-stocks-to-buy-the-sector
Top Healthcare revenue stocks as hedge funds sell Tech stocks to buy the sector
Goldman Sachs’ Tony Pasquariello said he has observed a significant rotation into healthcare stocks (XLV) recently, with professional investors – including both real money and hedge funds – selling technology (XLK) positions to acquire healthcare assets.
This trend appears poised to continue if earnings inflect higher, suggesting considerable runway remains in this sector, and these types of rotations are likely to become more common in the months ahead rather than unusual occurrences, he said in a recent note.
The following list presents the top healthcare stocks ranked by revenue surprise, showcasing companies that have exceeded revenue expectations by the greatest margin. This compilation features prominent healthcare players including Cardinal Health (CAH), CVS (CVS), and The Cigna Group (CI), all of which have demonstrated significant financial performance relative to analyst forecasts.
https://seekingalpha.com/article/4847823-healthcare-etfs-i-prefer-vht-growth-to-xlv-stability
Healthcare ETFs: I Prefer VHT’s Growth To XLV’s Stability
- Vanguard Health Care ETF and Health Care Select Sector SPDR Fund both benefit from healthcare innovation tailwinds, earning a buy rating.
- VHT offers broader diversification and greater exposure to small-caps and biotechs, providing stronger upside potential compared to XLV’s mega-cap pharma focus.
- XLV’s concentrated portfolio delivers higher dividend yield and stability, but exposes investors to greater idiosyncratic risk from top holdings like LLY.
- Both ETFs have similar risk metrics and cost efficiency, but VHT’s diversified approach makes it a preferred choice for capturing sector growth and innovation.
one of the key differences between the two funds is the diversification. They are both market-cap weighted, but their indexes are very different. XLV is tracking the Health Care Select Sector Index, an S&P Global index using the S&P 500 as its investment universe. Naturally, this results in a small amount of only 60 holdings with a significant level of concentration. The top 10 accounts for 58.32% of the portfolio, of which 31.34% in the top 3 alone. The natural application of such an ETF would be to increase the share of healthcare companies of an S&P 500 investment, without wanting exposure to new companies not listed in the index. VHT is taking a very different approach with a much wider investment universe as the fund is tracking the MSCI US Investable Market Health Care 25/50 Index, also including mid-caps (8.9%) and small-caps (3.0%). As VHT’s investment universe is a lot wider, the fund holds 398 stocks: the fund is significantly more diversified but remains somewhat concentrated due to its market-cap weighting methodology. The top 10 accounts for 44.29% of the fund of which 21.20% being the top 3.
Hedge funds increased their overweight positioning in health care (NYSEARCA:XLV) despite a 7% decline in the sector during the second quarter, according to Goldman Sachs’s Hedge Fund Trend Monitor.
The concentration was mostly seen in biotech and pharmaceuticals.
Also, vs. the Russell 3000 (IWB), health care saw a 458-basis-point change in tilt positioning by hedge funds.
Below are the most popular increases in health care based on the number of funds changing portfolio allocation during the second quarter:
** Thermo Fisher Scientific (TMO) - # of position increases minus decreases: 44*
** UnitedHealth Group (UNH) - # of position increases minus decreases: 44*
** Veeva Systems (VEEV) - # of position increases minus decreases: 37*
** Insmed Inc. (INSM) - # of position increases minus decreases: 36*
** Becton, Dickinson, and Co. (BDX) - # of position increases minus decreases: 31*
** Exact Sciences Corp. (EXAS) - # of position increases minus decreases: 31*
** Halozyme Therapeutics (HALO) - # of position increases minus decreases: 31*
** NeoGenomics (NEO) - # of position increases minus decreases: 31*
** Neogen Corp (NEOG) - # of position increases minus decreases: 30*
** Bristol-Myers Squibb Co. (BMY) - # of position increases minus decreases: 28*