HBM Healthcare Investments (HBMN) is a Switzerland-listed closed-end fund investing in listed and private healthcare companies globally. In a volatile stock market environment, the fund has performed strongly in NAV total return terms, rising to the top of its peer group over one and three years. Factors behind the positive performance include strong exits/IPO values from private companies, premium takeovers of listed stocks, good clinical newsflow from some holdings and the lower volatility of private investments. The managers point to approaching clinical catalysts for a number of the top holdings, where early data suggests newsflow may be positive, leading to substantial (although by no means guaranteed) upside potential. The shares currently yield 5.5%.
