Yesterday MM switched our tech-facing Altium (ALU) position to Ramsay Healthcare (RHC) for our Flagship Growth Portfolio – the Healthcare operator has sat on our Hitlist over recent weeks. The move has taken our exposure to the Healthcare Sector up to 15%, noticeably above its market weighting which is closer to 10%. We now hold 3 major healthcare stocks in this portfolio.
- CSL Ltd (CSL) – 6%, Ramsay Health Care (RHC) – 5%, and ResMed (RMD) – 4%.
Healthcare stocks are in the same growth basket as tech without steroid-like volatility. Over the last 5 years apart from COVID rising bond yields has been the bane of the sector leading to sharp corrections in both 2018 and late 2021. However, we believe central banks are close to a rate pivot which should be supportive of healthcare stocks e.g. as we showed earlier the US 2-year yield has pulled back from over 5% to sub 4% in recent weeks theoretically creating a tailwind for healthcare stocks as a whole.
- We are comfortable carrying an overweight stance towards the Healthcare Sector but we are considering trimming it back slightly this financial year.
MM is bullish on the ASX Healthcare Sector
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