Update-1 6/18 On a Risk-Off Day with Selling at Close

NASDAQ down 0.92% to 14030, ARKG down 0.62%,IBB down 0.185, XBI down 0.6%, XLV down 1.14% at $123.74.

iShares Medical Device ETF (IHI) down 0.65% at $350.67.

Focus Mid-Cap Life Science Stocks: CYRX down 1.77% to $60.49, CRSP up 0.44% to $127.83, VCYT down 1.89% to $37.47.

 

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Healthcare Portfolio Playbook-Time to Rebalance

  • Add MedTech (IHI) as a diversified healthcare play.
  • Look for new picks-smaller cap growth prospects.
  • Hold large cap biopharma as core positions.

We have been tracking our Healthcare Mini-Portfolio since October 2020 as a diversified approach to the sector. The strategy is relatively low risk in that it emphasized the relatively defensive XLV as overweight while balancing it out with large cap biopharma. We will update our healthcare portfolio over the weekend. As we look to re-balancing the portfolio near term investors should consider adding Medtech as we have suggested in the past. The ¬†iShares US Medical Device Medical Device ETF (IHI) has major MedTech holdings in tools, diagnostics and surgical procedures. Some of the stocks held we have covered are : ABT, BDX, MDT and TMO but also among the Top Ten holdings are IDXX ISRG ISRG and SYK. As the vaccine supports the “reopening” of the economy medical procedures should pick up. The IHI is up 6.3 % YTD and 19.39 %over 3 years total return.

Another option would be the Fidelity Select Medical Technology Portfolio (FSMEX) which I have owned for more than ten years. YTD Performance is 8.64% with a Five year return of about 18.4% annualized.

More recently we have focused on large cap biopharmaceuticals for growth and value with dividends . Our core holdings are ABBV, BMY, GILD, REGN, RHHBY and PFE.

Over the past month we have added ARKG at about $78 as a trade and alternative to the XBI. We also bought these three mid-cap growth stocks:

Cryoport, Inc. (CYRX) A life science services Company focused of temperature controlled logistics.

CRISPR Therapeutics AG (CRSP) a leading Company in gene based medicines with a pipeline in Hemoglobinopathies, immuno-Oncology and Regenerative Medicine.

Veracyte (VCYT) a genomic diagnostics Company with products in cytopathology for lung cancer, thyroid disease and prostate cancer.

All of these stocks are volatile and off February highs. Summary at close today. 6/18. Posted at 11:45a EDT . IHI at $351.62.

 

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