What to Put in a Healthcare Port Anyway
So, since I now have a healthcare portfolio, I've been thinking about how to break it down mentaly. I already talked about the behavioural framework which I tend to monitor. But I really want to consider the more traditional metrics. I was tempted to look at some key healthcare funds and get a sense on how they breakdown thier holdings. I'll do that sometime, but as I started to go through it I worried that this might bias my thinking or classifications. So, this commentary being mostly about evolving my own thinking, I wanted to start with what I think about subsectors within healthcare. CAPS too has classifications which I may use / incorporate, but again, I want to start with 'off the top of my head classifications.
-Pharmaceuticals (major pharma with products)
JNJ is only partly in this one.
-Biotechnology - Drug developers (pharamceutical wannabes is how I think about this).
EXEL would go here
-Biotechnology - Technology (mostly instrumentation and tools)
--Health IT, probably a sub of the Biotech-Tech piece, but perhaps separate.
-Retail, i.e. where thee is consumer discretionary spending
Part of CVS and JNJ.
-Real Estate (health oriented REITS)
-Support Services (really broad category and perhaps a catch all)
Includes lab servies (BRLI), distribution and othe services (CAH, part of CVS), clinical CROs (PPDI, KNDL)
MDT, part of JNJ.
Is there a subsector I am not considering (likely, this was off the cuff)? It will probably be better to put others into my framework than adapt to that more traditionally used. Also, it may be worth considering a preferred weighting for each group in an idealistic sense, and then consider why I am over or underweight certain parts. I have always had biases toward certain segments, partly simply due to familiarity (which is OK as long as I am aware of it).
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