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THW, the latest healthcare fund from Tekla is now on the market. As expected, it's trading at nearly a 5% premium, so not a buy today. Don't know what stocks Mr Olmsted is buying for this fund, or if HQL, HQH, and THQ have limitations on foreign companies creating a need for a global fund. Scant details at teklacap.com.
1. I had no idea this fund was coming out. I got an alert because I own two of the other funds and was surprised to see it. There was nothing about the fund on the website yesterday.
2. Are there really enough major foreign healthcare names for this to be worthwhile? I mean, I know there's the European names (Novartis, Sanofi, etc etc) and others, but HQH (for example) is 12% foreign. This new fund can be up to 40% foreign - but "up to" is the focus (and 5% in EM.)
3. It can have 10% in private names, which is less than HQH/HQL.
I guess I'm just not seeing why I need this in addition to two of the other funds.
Edited to add: in terms of HQL, I see in the propsectus: "The Trust may invest up to 25% of its net assets in securities of foreign issuers, expected to be located primarily in Western Europe, Canada and Japan, and securities of U.S. issuers traded in foreign markets (‘‘Foreign Securities’’). The Trust may buy and sell currencies for the purpose of settlement of transactions in Foreign Securities"
and "The Trust emphasizes investment in securities of emerging growth Life Investments Sciences Companies. These investments are often venture capital investments. The Trust may invest up to 40% of its net assets in securities subject to legal or contractual restrictions as to resale (‘‘Restricted Securities’’), including venture capital investments. The Trust’s investments in Restricted Securities may include ‘‘start-up,’’ early and later stage financings of privately-held companies and private placements in public companies. See ‘‘Investment Objective and Policies.’’"
So HQL has up to 25% in foreign and up to 40% in private. The new worldwide fund can do up to 10% in private and up to 45% in foreign.
Honestly, I'd rather HQL's 25% in foreign and 40% in private.
Comments
1. I had no idea this fund was coming out. I got an alert because I own two of the other funds and was surprised to see it. There was nothing about the fund on the website yesterday.
2. Are there really enough major foreign healthcare names for this to be worthwhile? I mean, I know there's the European names (Novartis, Sanofi, etc etc) and others, but HQH (for example) is 12% foreign. This new fund can be up to 40% foreign - but "up to" is the focus (and 5% in EM.)
3. It can have 10% in private names, which is less than HQH/HQL.
I guess I'm just not seeing why I need this in addition to two of the other funds.
Edited to add: in terms of HQL, I see in the propsectus: "The Trust may invest up to 25% of its net assets in securities of foreign
issuers, expected to be located primarily in Western Europe, Canada and
Japan, and securities of U.S. issuers traded in foreign markets (‘‘Foreign
Securities’’). The Trust may buy and sell currencies for the purpose of
settlement of transactions in Foreign Securities"
and "The Trust emphasizes investment in securities of emerging growth Life
Investments Sciences Companies. These investments are often venture capital
investments. The Trust may invest up to 40% of its net assets in securities
subject to legal or contractual restrictions as to resale (‘‘Restricted
Securities’’), including venture capital investments. The Trust’s investments
in Restricted Securities may include ‘‘start-up,’’ early and later stage
financings of privately-held companies and private placements in public
companies. See ‘‘Investment Objective and Policies.’’"
So HQL has up to 25% in foreign and up to 40% in private. The new worldwide fund can do up to 10% in private and up to 45% in foreign.
Honestly, I'd rather HQL's 25% in foreign and 40% in private.