In its monthly update for July, the investment trust focused on global healthcare equities reported a NAV of 192.98p, which was down 0.8% over the period though still up 13.5% since the start of 2021.
“Whilst the preceding month proved to be a positive one for equities in general and healthcare in particular, it was not so for us as a propitious start to Q2 reporting failed to translate into sustained positive share price performance for our holdings where we again lost ground in a turbulent week of factor-driven volatility.
“The Market can be a cruel mistress indeed, but positive fundamentals will only be ignored for so long,” said the investment managers Paul Major and Brett Darke at Bellevue Asset Management team in their six-page report.
Looking at the healthcare market, the managers noted that hospitals have been the “big winners” in terms of positive earnings revisions in the current reporting season, alongside procedural med-tech companies.
“However, the latter has not seen the same flow-through into share price performance, reflecting as we have noted previously, already elevated longer-term expectations and also valuations relative to history.”
The managers said they took advantage of the volatility in the market to add to the portfolio in terms of re-weighting existing holdings to maximise upside potential and further adding to the portfolio with one new company, taking the portfolio to 33 companies.