Swiss company Bellevue Asset Management has launched the BB Adamant Digital Health (Lux) fund that applies the strategy implemented since April 2016 in its BB HealthTech open-end certificate.
Run by Stefan Blum and Marcel Fritsch, the fund aims to look at the digitalisation of the healthcare system, that includes sectors such as telemedicine, robotic surgical systems and continuous glucose monitoring devices.
It invests in growing technology stocks benefiting from the healthcare sector’s trends (ageing population, spread of lifestyle-related diseases among others).
Bellevue AM said the value of the stocks in the fund’s portfolio in the near to mid-term future will be shaped by top-line growth, the achievement of well-defined milestones and M&A activity.
The fund will focus on fast-growing small and mid-cap companies in North America, Europe and Asia.
“Venture capitalists have invested about $24bn in 1,700 private digital health firms during the past 7 years, so we expect many attractive companies to go public in the coming years. Which is another argument to invest in the sector,” said Blum.
“In our fundamental bottom-up process, we will select 30 to 50 of the most attractive stocks out of a universe of 220 to 250 companies. The key criteria for inclusion in the fund are sales growth and gross profit margins, a solid balance sheet and the quality of company management,” Fritsch added.
Bellevue AM manages some CHF9.4bn in AUM including CHF5.4bn in healthcare investments through diverse strategies.