Health
Sciences

Investing in Scientific and Technological Advances in Health Care

Strategy Objective

Seeks long-term capital appreciation with primary focus on healthcare industry – pharmaceuticals, biotechnology, medical devices and services
 

Approach

  • Growth investment style that employs bottom-up, analyst-driven stock selection based on proprietary fundamental research and investment insights
  • Focus on durability/sustainability of growth rather than absolute growth rates
  • Believe new growth opportunities and significant alpha generation can result from correct analysis of new product opportunities
  • Look for:
    • Seasoned management, track record of creating shareholder value
    • Attractive, growing end markets
    • Defensible competitive positions with some pricing power
    • Prospects for predictable, durable earnings growth/high returns on capital
    • Solid balance sheets
    • For product companies: understated/underappreciated product potential; achievable regulatory hurdles; first/best-in-class product in marketplace; opportunity for earnings leverage; long-duration assets
    • Logical, understandable business strategy
    • Attractive valuations, both on absolute terms and relative to peers

 

Differentiating Characteristics

  • Core competitive advantage – seasoned investment team
  • Collaborative investment process
  • Highly experienced senior analysts with diverse backgrounds
  • Diversified portfolio across market caps, healthcare subsectors, global regions

Key Characteristics

Benchmark: S&P Composite 1500 Health Care Index
Number of Holdings: Typically 70 – 90
Strategy Inception: July 1999
Top Ten Positions: 30 – 50% of portfolio
Cash: < 5%

Investment Team

Our Health Sciences strategy is managed by two portfolio managers who also serve as two of the strategy’s dedicated analysts. The team is supported by Jennison’s broader research staff, three of whom are active contributors to the Health Sciences strategy.

 

Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.