Polar Capital Healthcare rejigs portfolio
Polar Capital Global Healthcare Trust (PCGH) has disclosed a significant portfolio rejig in its end June monthly update, noting that it had sold a number of positions and increased its cash holdings partly on concerns about increased volatility in the equity markets and the potential for a market correction over the summer. Positions that were sold include Boston Scientific, Shire and Vertex and others in Baxter, Biomarin and Stryker were reduced. However, Merck & Co was added back to the portfolio and new positions created in Medtronic and Autolus Therapeutics, the latter in its Nasdaq IPO.
The trust’s NAV was up 1.2% in June, lagging its benchmark, the Morgan Stanley Global Healthcare Index, which was up 2% for the month. This in part reflected an underweight position in large cap pharmaceuticals, which benefited from a move towards defensive stocks. Major positive movers in the portfolio included Acceleron (Nasdaq: XLRN), which saw a 30% rise in its stock price on the back of positive results in the Medalist Phase III trial of Celgene-partnered luspatercept in myelodysplastic syndromes (MDS) – the product also subsequently showed positive results in the Believe Phase III trial in beta thalassemia. PCGH’s portfolio also benefited from Roche’s decision to buy-out Foundation Medicine, a US molecular diagnostic company, at a significant premium. PCGH sold its position in HMS Holdings and reduced its stake in Teledoc, both of which have seen strong share price rises this year. The most significant detractor in the month was Summit Therapeutics, which saw an 80% fall in value on the failure and abandonment of ezutromid after a Phase II trial for Duchenne muscular dystrophy.
PCGH’s top 10 holdings positions, as of end June, are shown in the table below.
| Company | % of NAV |
| UnitedHealth Group | 4.7% |
| Novartis | 4.4% |
| Becton Dickinson | 4.3% |
| Abbott | 4.1% |
| Lilly | 3.9% |
| Danaher | 3.7% |
| Medtronic | 3.7% |
| AstraZeneca | 3.7% |
| Merck & Co | 3.6% |
| Humana | 3.4% |
Polar Capital healthcare rejigs portfolio : PCGH