Bellevue Digital Health
Portfolio consisting of high-quality growth stocks showing double-digit revenue growth
Regulation and stringent quality requirements limit the technological risk
Demographic changes and an aging general population demand greater efficiency and cost-effectiveness
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Investment Focus
ISIN-No. LU1811048054
The fund invests globally at least two-thirds of the portfolio in companies whose business activities have a strong focus on the digitalization of the healthcare sector. A global network of experts spanning scientific and industrial fields support the Management Team in forming opinions. The selection of portfolio companies is bottom-up.
Indexed performance (as at: 16.08.2024)
NAV: EUR 197.86 (15.08.2024)
Rolling performance (16.08.2024)
I2-EUR | Benchmark | |
15.08.2023 - 15.08.2024 | -5.32% | n.a. |
15.08.2022 - 15.08.2023 | -9.14% | n.a. |
15.08.2021 - 15.08.2022 | -23.11% | n.a. |
13.08.2020 - 13.08.2021 | 30.68% | n.a. |
Annualized performance (16.08.2024)
I2-EUR | Benchmark | |
1 year | -5.32% | n.a. |
3 years | -12.87% | n.a. |
5 years | 2.61% | n.a. |
Since Inception p.a. | 7.56% | n.a. |
Cumulative performance (16.08.2024)
I2-EUR | Benchmark | |
1M | -0.59% | n.a. |
YTD | -0.08% | n.a. |
1 year | -5.32% | n.a. |
3 years | -33.86% | n.a. |
5 years | 13.75% | n.a. |
Since Inception | 58.29% | n.a. |
Annual performance
I2-EUR | Benchmark | |
2023 | -7.26% | n.a. |
2022 | -22.83% | n.a. |
2021 | -3.14% | n.a. |
2020 | 54.70% | n.a. |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term, is actively managed and invests globally at least two-thirds of the portfolio in companies whose business activities have a strong focus on the digitalization of the healthcare sector. Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS BANK, LUXEMBOURG BRANCH |
Fund Administrator | CACEIS BANK, LUXEMBOURG BRANCH |
Auditor | PriceWaterhouseCoopers |
Launch date | 30.04.2018 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.80% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU1811048054 |
Valor number | 41450816 |
Bloomberg | BBDHI2E LX |
WKN | A2JJBC |
Total expense ratio (TER) | 1.32% (31.07.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.07.2024, base currency USD)
Beta | 0.97 |
Volatility | 31.89 |
Tracking error | 22.20 |
Correlation | 0.72 |
Sharpe ratio | -0.52 |
Information ratio | -1.05 |
Jensen's alpha | -26.01 |
No. of positions | 36 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Benefits & Risks
Benefits
- Demographic changes and an aging general population demand greater efficiency and cost-effectiveness.
- New technologies conquer the healthcare sector.
- Portfolio consisting of high-quality growth stocks showing double-digit revenue growth.
- Regulation and stringent quality requirements limit the technological risk.
- Bellevue – Healthcare pioneer since 1993 and today one of the biggest independent investors in the sector in Europe.
Risks
- The fund actively invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
- Equities linked to technology and/or digitization can be subject to higher-than-average fluctuations in value.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
21 of the 37 stocks in the fund's portfolio made a positive contribution to performance in July. Healthcare IT platform specialists Evolent Health (+22.0%), Privia Health (+19.3%) and Phreesia (+17.7%) made the best performance contributions. The business activities of these companies are closely interwoven with the US health insurance industry and outcomes-based care plans. The changing dynamics of the race for the White House after Kamala Harris became the Democratic Party’s new presidential nominee could have a positive impact on the stock prices of these companies. Illumina (+17.5%), Accolade (+14.5%), Resmed (+11.4%), Exact Sciences (+8.1%), Omnicell (+7.9%), 10X Genomics (+6.3%), Globus Medical (+5.1%) and Procept BioRobotics (+3.7%) also made positive performance contributions.
The three new positions that we had initiated in the previous month in the course of their IPOs showed a mostly positive performance. Waystar (+7.0%) is a provider of cloud-based software that simplifies and automates payment-related healthcare workflow tasks. QuantumPharm (-3.5%) has developed an innovative quantum physics-based, AI-powered and robotics-driven integrated drug R&D platform. Tempus (+23.7%) has developed a technology platform that integrates AI-powered analytics to enhance diagnostics and accelerate the drug discovery process. These companies are promising investment opportunities that, over time and with the anticipated successful business development, could take on a greater weighting in the portfolio.
Core investment Dexcom (-40.2%) had a negative impact of -2.6% on overall fund performance in July. Dexcom management appears to have made a few mistakes during the realignment of the company’s sales force and therefore had to revise its 2024 guidance sharply lower. For one, Dexcom gave the pharmacy channel too much weight, which upset its long-standing medtech distribution partners. Then, due to newly defined customer target groups – people with diabetes who require only basal insulin or who do not take any insulin at all – management expanded and reorganized the company’s own sales force, which led to some frictional losses and a slower rate of new customer starts. However, these problems should be ironed out by the end of the year. The slower pace of new customer starts in 2024 will lead to a slower sales growth rate in 2025. However, that effect should be partially offset by the recently launched Stelo device (new glucose sensor for people not on insulin). Other performance detractors were Penumbra (-7.2%), GN Store Nord (-6.2%), TransMedics (-5.6%), Natera (-5.4%), Align (-4.0%) and Insulet (-3.7%). All performance data is in USD / B shares.
In their discussions with investors during February and March, the executives of many companies made positive remarks about business in the first quarter and for 2024 as a whole. The approval and subsequent launch of relevant new products will continue to bolster sales growth, too. Examples here are Inspire Medical's new Inspire 5 device for obstructive sleep apnea, Dexcom's Stelo and G7 blood glucose sensors, Intuitive Surgical's new da Vinci 5 surgical robot, and Insulet's Omnipod 5 patch pump.
As witnessed during the last two years, even outstanding sector-specific fundamentals can be overridden by macroeconomic developments and shifting investor preferences. In 2024, we expect our investment solution to benefit from several factors: Cuts in US interest rates (which usually benefits growth stocks the most), attractive valuation levels (price/sales multiples close to historical lows), an expected increase in M&A and IPO activity, a general repositioning as investors drop last year's outperforming stocks and buy high-quality stocks, and the underwhelming growth outlook for the world economy (which in the past has been a relatively good setting for non-cyclical subsectors such as the digital health) underpin our optimism and make a good case for investing in the Bellevue Digital Health (Lux) Fund.
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