Polar Capital's Douglas 'optimistic' on defensive healthcare

Eye on large-cap pharma and biotech

Defensive areas within healthcare provide nuggets of optimism, with large-cap pharmaceuticals and large-cap biotechnology particularly favoured, Polar Capital has said.

James Douglas, fund manager within the global healthcare team, said large-cap pharma and biotech have collective strong balance sheets, good cashflow conversation and secure dividend yields, where applicable. He said areas where "sentiment collapsed" during March included medical devices and healthcare facilities due to the delays in non-urgent procedures at hospitals. Small and mid-caps were also hit hard due to perceived higher risk. Douglas said: "On a one and three-year view, areas hit hardest with the worst sentiment offer compelling returns. "Assuming some kind of resumption ...