Healthcare VGHCX and value TBGVX are featured in Barron's this week. Summaries are from
LINK.
Barron's Issue (may need subscription)
https://www.barrons.com/magazine?mod=BOL_TOPNAVJean HYNES, CEO (07/2021- ) of Wellington Management and Manager of VG Healthcare VGHCX (active). VGHCX has exposure in biopharma (overweight), healthcare services (overweight), medical technology (underweight as many stocks have runup). Biotech (IBB) have been hurt by speculation, IPOs, difficult clinical testing and FDA approval process, and higher interest rates; many biotech are trading below their cash levels and their further downside may be limited. Megatrends include revolution in biology (ILMN, MRNA, PFE, AZN, TMO, DHR, etc) and healthcare digitization (UNH, ANTM, etc). We may be better prepared for the next pandemic. AI will have a huge impact in future. Unfortunately, many diseases have not received much attention or investments. (Nothing about Wellington Management)
FUNDS. Comanagers Thomas SHRAGER and Robert WYCKOFF of international value TBGVX (ER 1.37%) don’t rely on old value metrics such as book value, but on the newer EV/EBIT (more relevant for buying whole companies), etc. The current tectonic shift to value started in 2020/Q4. Higher rates also favor value vs growth. Fund holds a mix of high-quality steady companies, cyclicals and deep-value; Europe accounts for 42%.
Also
REVIEW. BIOTECH stocks are in a bear market (XBI -39% YTD, -61% since 02/2021). 120+ biotech have market value less than their net cash on hand. Only a handful of biotech are doing well or OK – AMGN, VRTX, IONS, ALKS, EXEL, MIRM, ALBO, VIVO, IRWD, etc.
Comments
He has a "hold" ie Sell on VGHCX but rates VHT a buy still.
M* also notes underperformance since 2016 and that its foreign exposure is high at 25%+. Hynes has been comanager since 2008 and manager since 2013. M* still has (backward-looking) 4* and (forward-looking) Silver ratings for it.
That didn’t hurt Hynes’ career at Wellington Management as she rose from administrative assistant through the ranks to CEO in 2021. I was hoping to see some insights into where Wellington Management is going but there wasn’t any.
IIRC, the fund performed well under Edward Owens.
It's performance has been about average during Jean Hynes' solo tenure.
Ms. Hynes is the only named manager for VGHAX and she also became Wellington CEO in 2021.
It seems like she has a lot on her plate...
The fund was subsequently sold in all three active Independent Advisor model portfolios -
Growth, Conservative Growth, and Income.
IIRC, Mr. Wiener pulled the plug on the Health Care Fund after Jean Hynes
became the Wellington Management CEO on June 30, 2021.
UNH has yet to demonstrate that owning physicians ( whose interests are directly opposed to the bottom line of a health insurance company) is a better business model that will be competitive. For years UNH has been the nastiest, most restrictive and most anti-patient health insurer around.
Every health care fund has MDs and PhDs, I assume who think they can predict which new drug or monoclonal antibody is going to be successful. It is hard to predict biological success in clinical problems before the results of the clinical trials are available.
Biogen is a classic example of pouring piles of money into a new drug that doesn't work, but then being stuck when you have to face the music. Having invested so much they can't let it go and fund "work arounds" and political pressure to get it approved.
I will pass on VGHCX and look for other options.
https://www.marketwatch.com/articles/healthcare-revolution-how-to-invest-51652337901?mod=mw_quote_news
If first link doesn't work , try this one.
Having said that, he is usually correct about individual Vanguard funds in the long run. There are lots of ways to play healthcare, I just don't see any reason to believe Hynes can all of a sudden "get it right".
RYH is an interesting idea. Buffet just bailed on BYM and bought McKesson. Maybe he knows something
Managed by Eddie Yoon since 10/01/2008.