One strategy that I have attempted to include as part of my portfolio review and yearly reallocation is to use "allocation funds" as the destination for other funds that need paring back. I consider these allocation funds as having attributes that served my goals well when I started investing and I now see them as serving a different goal in retirement.
I began my investing (call this my 30's) by first owning well diversified allocation funds such as VGSTX, OAKBX, VWINX, VWELX, DODBX, PRPFX, PRWCX, and others. These funds provided me with a way to funnel small contributions into one or a few of these funds based mainly on their availability to my workplace retirement plan. It exposed "my meager, but dear savings" into what I consider a long term well managed (hopefully), well diversified investment. These funds often had a history of good risk / reward, solid management, were reasonably priced (low ER ratio) and made "staying the course" pretty certain.
As my savings increased and my knowledge base grew (call it my 40-50's) I began realizing that I could create my own personal portfolio allocation using not only these funds, but a combination of "non-equity" funds (Bonds, RE, Commodities) and equity funds that had an "alpha/growth" strategy (sector, size, class, valuation, manager, etc.). These "fund combos" provided me with the biggest momentary losses and the largest momentary gains, but in the end have kept me up at night more often than the allocation funds I also still owned.
I began to discipline myself to trust my fund choices to "stay the course" and use these momentary ups and downs in the market to reallocate between the "non-equity" portion and the "equity" portion of these investments, but as I reach my 60's, 70's and beyond I see myself developing a third approach.
I see some of my low risk / low return "non-equity" funds along with some very conservation allocation funds as serving a roll in holding a portion of my portfolio for short term needs. (1-3 year, call these PONDX, PTIAX, CBUZX) for distributions of income, RMD, emergencies and retirement "fun".
I see the higher risk / higher reward "non-equity" funds along with the higher risk / higher reward "equity" funds as serving a roll in maintaining long term growth. (10 years and longer), and I'll place my stallions here (POAGX, VGHCX, FSRPX, etc). Note to self: "I have too many of these..."
I see my conservative, moderate & aggressive allocation funds as having a larger and key place in my retirement portfolio as the core of my holdings will occupy this space. These are investments have a (3-9 year) holding period that provide good portfolio diversification as well as "growth and income" to reallocate and "feed" ongoing (1-3 years) needs.
The Conservative Allocation fund (3-5 year) needs in VWINX, GLRBX or CBUZX.
The Moderate Allocation fund (5-7 year) needs in JABAX or OAKBX.
The Aggressive Allocation fund (7-9 year) in PRWCX or BTBFX).
Each of these allocation funds will periodically "feed" the 1-3 year funds over time.
Each of the long term funds (10 years or more) "feed" the allocation funds.
Hopefully there will be enough "feed" to go around.
If you have any thought on this approach or suggestions for potential candidates for:
1-3 year funds -
3-5 year funds -
5-7 year funds -
7-9 year funds -
10 and longer funds -
I'd appreciate it.

I'm really surprised that one of my very long-term investments, Franklin Mutual Global Discovery (MDISX), made this list, with an eye-popping outflow of 16%.
It has a great long-term record (even though Michael Price is just a fond memory). Solid team managing it. Guess that isn't enough.

I'm a recent buyer in MDISX, but not a meaningful position. I used to own it long time back when I was with E*Trade and it was NTF. However, I couldn't stand E*Trade and with it I had to exit my MDISX position. Now I'm back, and let's hope people fleeing MDISX is a contrarian indicator.
I also own MALOX in one of my retirement accounts and VGHCX for a trade.

@MFO: How about VGHCX, inception date 5/23/84, annualized return 16.63%.
Regards,
Ted

We use Vanguard Health Care, ETF (VHT ) for taxable account; excellent tax efficiency. For our IRA, we use a combination of PRHSX and VGHCX. We side stepped Fidelity's offering due to too frequent manager turnover.

@ MFO Members: BenWP made an excellent point when he said, "For me, it's a hold-forever sector, so to the extent possible, I try not to let short-term political winds blow me off course." To prove the point about long-term, VGHCX has had an annual return since it's inception in 1984 of 16.63%, while PRHSX since 1995 has returned 14.55%
Regards,
Red

@LLJB - Thanks for your suggestions. I agree that PRHSX, VGHCX and/or FSPHX would be what I'm looking for. I have a brokerage account with both Fido and Price, so either of their two funds will be my likely choice. SBIO seems too volatile and concentrated for me, much like FBIOX. These two options can soar much more than diversified options, but I have an aversion to Maalox and Tums. Thanks nonethless!

I think PRHSX, VGHCX and FSPHX are all good diversified healthcare options. Which one does best in the future is anyone's best guess so I would choose based on what's available to you NTF or whatever you have a prefer for one reason or another. I chose PRHSX because it was NTF for me and even though the manager has been a bit of a revolving door they've seemed to do a good job with replacements so far.
I also own HQL, which is a Life Sciences closed-end fund, because they have private equity investments. Tekla has 4 closed-end funds with slight differences, such as a bigger focus on income, broad healthcare, life sciences and global, that have been discussed here occasionally if not recently so you could search for those discussions if you're interested. If you're just looking for general healthcare exposure I'd probably stick with one of the 3 mutual funds but if your interests are more specific then one of Tekla's offerings might be interesting.
Finally, I have a small position in SBIO, which is a small cap offering of biotech companies that have drugs in Phase 2 or 3 clinical trials and have enough cash to last them for 24 months. This is just as volatile as FBIOX and often more volatile so you either have to be a big believer, like loving roller coasters, or you have to trade the volatility in order to tolerate the craziness.

I can't wait to read more responses to your questions; I own FSPHX and FBIOX in addition to VGHCX (which is not on your list; you may want to add that to your list to complete your research).
PRHSX was closed when I was reshuffling my portfolio, but now open to investors; but I am good with the trio of VGHCX, FSPHX and FBIOX. FBIOX is most volatile of the lot, so if there is any need to sell, it will be the first to go.....and VGHCX will be the last to go. Also, rounding this group is POAGX (which has ~30% in Healthcare but currently closed).
ACA repeal will be only for short-term reaction to the sector. On the flip side, the President has also vowed to revamp FDA so drugs can come to market faster. A lot of "issues" in this sector (regardless of regulation, innovation and pricing are big factors for the sector).
Some of the regulations only transfer "power" between the sub-sectors (sub-sectors: traditional Pharma, Biotech, Payers (Managed Care companies), Distributors, etc). For example, ACA and pricing "gave" the Payers more leverage recently. On that note, I think PRHSX may be the most diversified of the lot, VGHCX and FSPHX are broadly diversified and FBIOX is the most concentrated. .
I have had VGHCX and FSPHX for a long time (not selling them), and I bought FBIOX early last year when it was down big (I may sell soon). All of them are still lower compared to their 2015 highs.
But I will wait for the "correction" to buy. Look forward to other comments.

Ranking equity funds only:
VGHCX: 8.48%
VWINX: 1.41%

Investors have to take charge and be their own smart beta managers. Just using a simple empirically based moving average switch strategy on an index and a bond fund has produced risk mitigated alpha above buy and hold.
https://docs.google.com/document/d/1XwZjcWy7KlSwA7xi0rax7nevIBCtW0Uu4UZFH-Hc1ns/edit?usp=sharing
And if that's too complicated, then try a 60 / 40 balanced portfolio of vanguard specialized Health and Vanguard long bond https://portfoliovisualizer.com/backtest-portfolio?s=y&allocation1_1=60&showYield=false&endDate=02%2F28%2F2016&allocation2_1=40&startYear=1985&lastMonth=12&symbol1=VGHCX&endYear=2016&frequency=4&symbol2=VUSTX&s=y&inflationAdjusted=true&annualOperation=0&rebalanceType=1&initialAmount=10000&timePeriod=4&firstMonth=1&annualAdjustment=0&reinvestDividends=true&annualPercentage=0.0
As the finance industry is incentivized to sell "product and charge fees, there is a dearth of incentive and funding for quantitative research. Even something as simple as the moving average strategy would slip through the "echelons".

@msf: U.S. News & World Report ranks PSPHX #2 & ETHSX #16. My problem with ETHSX is it's load. There are many excellent health-care fund that are no-load. On the positive side is ETHSX's manager, Sam Isely, who's steady hand has managed the fund since inception in 1985
Regards,
Ted
ETHSX Category Percentile Rank:
http://performance.morningstar.com/fund/performance-return.action?t=ETHSX&region=usa&culture=en-US
FSPHX Category Percentile Rank:
http://performance.morningstar.com/fund/performance-return.action?t=FSPHX&region=usa&culture=en_US
PRHSX Category Percentile Rank:
http://performance.morningstar.com/fund/performance-return.action?t=PRHSX&region=usa&culture=en_US
JAGLX Category Percentile Rank:
http://performance.morningstar.com/fund/performance-return.action?t=JAGLX&region=usa&culture=en_US
VGHCX Category Percentile Rank:
http://performance.morningstar.com/fund/performance-return.action?t=VGHCX&region=usa&culture=en_US

Some other notables with steep monthly pullbacks:
Dodge & Cox International Stock (DODFX): -9.4% ... on top of -4.8 in Dec and -1.6 in Nov.
T Rowe Price Growth Stock (PRGFX): -9.1
Oakmark International I (OAKIX): -9.0
Fidelity Growth Company (FDGRX): -10.6
iShares MSCI Japan (EWJ): -8.2
iShares MSCI Emerging Markets (EEM): -6.6
American SMALLCAP World A (SMCWX): -9.2
T Rowe Price New Horizons (PRNHX): -9.3
Vanguard Health Care Inv (VGHCX): -8.9
Fidelity OTC Portfolio (FOCPX): -12.7
On the other hand:
Consumer Staples Select Sector SPDR (XLP): +0.6%
iShares US Preferred Stock (PFF): +1.0
iShares TIPS Bond (TIP): +1.5
PIMCO Income Inst (PIMIX): +0.3
T Rowe Price New Income (PRCIX): +1.0
iShares Core US Aggregate Bond (AGG): +1.4
Dodge & Cox Income (DODIX): -0.1
DoubleLine Total Return Bond I (DBLTX): +1.3
Vanguard Total Bond Market II Index Inv (VTBIX): +1.4
PIMCO Total Return Inst (PTTRX): +1.0
Vanguard Wellesley Income Inv (VWINX): -0.2

Even the most conservative of funds in this sector is suffering...Vanguard HC (VGHCX) down more than 8%, which I also own. But I'd rather own an up and coming biotech than anything in the oil patch...but, that's just me.

If the last thirty years are any indicator of future trends in Healthcare, maybe a 90/10 portfolio of VGHCX / VFISX vs Warren's VFINX / VFISX: (click on each image for better clarity)

willmatt72
Other than the usual suspects, mostly individual REITs in the non-taxable account.
Having said that...I did find something which occurred a few years ago in my taxable account...in 2011. All of my funds with the exception of VGHCX all lost money. But my entire income sleeve of individual dividend paying stocks had a 11% gain. So while most folks wouldn't consider that subset of stocks to be diversifiers, I do. It may have been just a weird alignment of stars, but it did happen.

Several of my favorite funds are mentioned on this thread, VHCOX which I've owned since 2001, and POAGX, since 2007. As you can imagine, they've both had some style drift as their assets have expanded...not that I'm going to complain too loudly though. Much less SC than before.
Bee...One of the funds I've recently purchased for my rollover IRA which I believe will be a nice complement to these 2, would be SCMFX. It is a small/mid blend, and if you do a performance comparison between that and POAGX, you will see a fairly even performance match until the biotechs powered the Primecap fund ahead over the last 2 years. SCMFX has been profiled on MFO, and it held up fairly well over the recent turmoil perhaps due to the additional value component.
Per your comment as well, I was also intrigued by the Eventide family, and have a starting position in ETNHX. More spice than my VGHCX holding, but I am thinking this is a lower risk way to get exposure to the biotechs than an individual holding, and I wanted to stay away from the ETFs.
press

Using YahooFinance's portfolio tool I got these results:

IGPAX reported at 6:59 pm yesterday. Etf (VHT) will usually report at 4:00 pm usually while you have to wait until about 6:25 pm for VGHCX...similar holdings, but not identical. I sometimes monitor VHT during the day as a close proxy for how the mutual fund will do.
Doctor Copper need patients to remember to have patience...try to enjoy your stay in the investment waiting room.

@Ted, M* says $10,000 become $35,280 in 10 years with VGHCX so you should probably send the bill for 2 dinners!

@PRESSMUP; Next time I go out to eat, I'm sending you the bill. A $10,000 investment in VGHCX 10 years ago in now worth $23,440--Nice work ! Note MFO Members what long-term comittment to a fund can bring.

Ted...I bought VGHCX over 10 years ago because HC was a defensive sector. Funny how being cautious worked out, eh?