China’s No. 1 health care fund manager looks for Apple-like growth power by keeping faith with ‘expensive’ market leaders
- Health care stocks with unique strengths, bright outlook will continue to be expensive, says money manager at Golden Eagle Asset Management
- Han Guangzhe’s fund beat all domestic rivals with 33.2 per cent gain in the first-half as top 10 picks extended rally from 2020
Eight of his top 10 picks have gained by 17 to 142 per cent so far this year, while two stumbled by 14 to 26 per cent, helping his Golden Eagle Healthcare Fund end the first half as the top-ranked sector leader with a 33.2 per cent return, according to a ranking by East Money Information, a data and financial services provider.
“I prefer growth stocks in expanding industries, especially companies that already have a relatively large or commanding market share,” Han, Beijing-based money manager at Golden Eagle Asset Management, said in an interview. “In future, the trend is likely that the big ones will become even bigger.”
An MSCI index tracking 90 Chinese health care stocks with a market value of HK$2 trillion (US$257 billion) have rallied 22 per cent this year, twice the global average return, according to Bloomberg data. They also outpaced their global peers by 63 per cent versus 14 per cent in 2020, during which Han’s 10 stocks surged by 101 per cent to 2,065 per cent in 2020.
His top 10 holdings at the end of March included Chongqing Zhifei Biological Products, Porton Pharma Solutions, Changchun High & New Tech Industry, Xian Kaiyuan Investment, Zhejiang Jiuzhou Pharmaceutical and Shenzhen Mindray Bio-medical Electronics. They trade at 29 to 134 times forward price-earnings multiples, according to Bloomberg data, compared with an average of 73 times for MSCI China Health Care constituents.
