The UBS US Growth fund has heavily reduced its exposure to healthcare stocks ahead of the US Presidential Election, which is set to unleash a wave of regulation upon the sector regardless of the victor, according to portfolio manager Peter Bye.
Both incumbent President Donald Trump and Democratic Primary challenger Elizabeth Warren have promised their own approaches to reform in the lead-up to the 2020 election, which present "a growing threat" to the long-term health of the sector, Bye said. As a result, the former sell-side healthcare-focused equities analyst has reduced the sector's weighting in the portfolio to 12.6% from 17.5% at the same time last year amid a "clear trend" of growing risk. Bye said: "I am not trying to call the election, but it is a risky scenario. There is a real risk here that these companies' earnin...
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