In this article we present the list of top 10 large-cap healthcare stocks to buy now. Click to skip ahead and see the Top 5 Large-Cap Healthcare Stocks to Buy Now.
The healthcare industry has been one of the strongest drivers of GDP growth in recent decades, which has translated into massive returns for healthcare stocks. The healthcare sector’s total return of 296% during the 2010’s only trailed two other sectors, technology and consumer discretionary.
Some of the biggest winners during the decade were managed care providers and health insurers, which rode the Affordable Care Act to massive returns. Biotech and medical device companies were also strong performers.
That trend is expected to continue in the decades to come, with health spending projected to outpace GDP growth in the majority of OECD countries over the next decade, resulting in health spending per capita reaching an estimated 10.2% of GDP by 2030, up from 8.8% in 2018. In the U.S, the Centers for Medicare and Medicaid Services Office of the Actuary projects that healthcare will account for 19.4% of GDP in 2027, up from 17.9% in 2017, driven by an aging population and price increases.
To uncover some of the best names in the healthcare space, we turned to Henrik Rhenman’s Rhenman & Partners Asset Management, a Stockholm, Sweden-based healthcare-focused hedge fund that was founded by CIO Henrik Rhenman in 2008. The fund uses fundamental analysis and scientific advice from external experts to uncover promising stocks in the global healthcare market.
Rhenman’s flagship Rhenman Healthcare Equity L/S Fund has been incredibly successful since its inception in June 2009, delivering compound annual returns of 18.1% through April 2020. The long-biased fund returned just over 40% in 2019 in addition to 35% returns in 2017 and 20% returns in 2015. Those hefty returns more than outweighed the fund’s 5% loss in 2018 and 12% loss in 2016.
The following list of Top 10 Large-Cap Healthcare Stocks to Buy Now is based on Rhenman & Partners’ 13F holdings as of December 31, 2020 according to the fund’s latest 13F filing.
We follow hedge funds like Rhenman & Partners because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns. The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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