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TMFHelical (99.05)

What to Put in a Healthcare Port Anyway

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November 11, 2010 – Comments (2)

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)

BIO

 --Health IT, probably a sub of the Biotech-Tech piece, but perhaps separate.

-Healthcare Providers

-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)

-Medical Devices

MDT, part of JNJ.

-Medical Diagnostics

CEPH, GHDX

 

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).

 

TMFHelical

Home Coverage Fool

 

 

2 Comments – Post Your Own

#1) On November 11, 2010 at 11:05 AM, topsecret10 (< 20) wrote:

Check out  (SKH)  (IDRA)  (AEGR)    Extremely heavy Insider buying In  {SKH}  noteable Insider buying In the other two... TS   :)

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#2) On November 11, 2010 at 11:50 AM, TMFHelical (99.05) wrote:

TS

I would absolutely love if this blog feeds me ideas, so thanks.

SKH - Skilled nursing operations.  I'd note that the REIT I own (outside this Roth) is moving away from skilled nursing facilities.  But that is the real estate, not operations.  I like these efforts, but they are at odds with the pay for procedure framework of healthcare reimbursement, one that adds expense in my opinion and only got more entrenched with the reform legislation.  The legislation also entrenched the hospital centric (higher overheadd) oversight model, another strike agains care from stand alone facilities.  I'd love to get behind companies like this, but am not sure this is the time for them (yet).

 

IDRA - Ideara.  Did you know I was an oligonucleotide guy?  I never worked for Hybridon, the root of this current company, but knew them well (and was an invited date at a few of their Christmas parties).  I think Ideara, and its approach for looking at the toll receptors is worth the effort and I hope they show solid progress.  I'll never have much behind what most people think of as biotech (drug developers).  It is a money hole for the public investor, and I don't think there will be any more Amgens, so the rewards are more limited.  I'll always likely have a couple, but not many and not high weighted.

AEGR - Aegerion.  Don't know them.  

By the way, there is an annual biotech stock picking contest on the TMF biotechnology board.  Annual effort that gets running around the turn of the year or so.  Please do join in if you would like.

http://boards.fool.com/biotechnology-100039.aspx

 

TMFHelical

Home Coverage Fool

 

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