Lates News

A reverse fund that has outperformed 97% of its competitors has been consistently buying healthcare stocks, betting that this underperforming sector will turn things around this year. The MFS Meridian Funds - Reverse Value Fund bought shares of Thermo Fisher Scientific and Becton Dickinson in early summer, believing that their valuations were too low. As of August, healthcare stocks accounted for 12% of the 2.7 billion ( $3.2 billion) fund, up from 6.9% at the beginning of the year. "Both medical technology companies and large pharmaceutical companies are facing issues related to cyclicality and regulation," fund manager Anne Christine Farstad said. "It's a unique time of various challenges for these stocks."