Bellevue Healthcare Trust PLC (LSE:BBH) co-portfolio manager Paul Major tells Proactive's Stephen Gunnion about the potential benefits for the healthcare sector as tech stocks lose their lustre.
Major discussed how the long-overdue rotation from tech could positively impact healthcare, particularly small and mid-cap growth stocks, which stand to gain from a potential decline in interest rates. He pointed out that while tech stocks have seen massive growth, healthcare, especially the biotech sector, might now be poised for significant gains.
Major also highlighted the return of the healthcare industry to pre-pandemic norms and the increasing interest in defensive, longer-term earnings within the sector. "Small mid-cap healthcare should be the biggest beneficiary within the wider healthcare investment universe of a negative rate environment," Major said. He further discussed the market's focus on GLP-1 drugs and the potential for new players to emerge as the market broadens.
Additionally, Major shared insights on the trust's current cash position and plans for reallocating capital in the coming months. He emphasised the trust's strategy of looking beyond giants like Novo Nordisk and Eli Lilly to identify the next generation of obesity treatments.
