Following yesterday’s Portfolio Positioning Report, we revisited the healthcare sector this morning and are looking for an alternative to our position in Ramsay Healthcare (RHC). In hindsight, we have given this position too much room, which weighed on the portfolio’s outperformance. There are two overriding points at play here:
- We are now neutral RHC, with the French election clouding the outlook for Ramsay Générale de Sante (GDS FP). We wouldn’t buy it now, so why hold it?
- However, we do like the healthcare sector moving forward, and a switch, if appropriate, would fit our top down views.
NB Aside from RHC, our Active Growth Portfolio only holds a 6% weighting in CSL, while the healthcare sector makes up almost 10% of the ASX200.
MM is neutral towards RHC
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