The healthcare industry is in a renaissance of innovation, marked by groundbreaking treatments, drug development, and advances in medical technology revolutionizing patient care. While challenges like cost, political headwinds, and workforce constraints persist, the overall trajectory remains positive and presents many opportunities for investors.
In this episode, Rusty and co-host Nick Codola, Senior Portfolio Manager at Brinker Capital Investments, are joined by Michael Taylor, Portfolio Manager at Simplify Health Care ETF (PINK). For the past two decades, Michael managed hedged and factor-neutral portfolios with a gross amount of over $ 1 billion at funds. He is regarded to have built and run one of the best-performing healthcare funds on Wall Street. Previous to portfolio management, Michael worked as a scientist during the 1990s, developing predominantly viral-vector-based gene therapeutic drugs for the bio/pharma industry.
Michael talks with Rusty and Nick about the current landscape of the healthcare industry, highlighting the advancements in drug development and medical technology. He emphasizes these innovations' positive impact on patient outcomes and quality of life. Michael also addresses the risks and challenges facing the healthcare sector, such as the potential impact of weight loss drugs on the economy and government spending.
Key Takeaways
[01:44] - Michael's background and work at Simplify Health Care ETF (PINK).
[02:52] - How Michael defines risks.
[08:04] - Michael's overall assessment of the healthcare landscape.
[10:58] - Probability of COVID to reemerge.
[17:20] - Michael's take on weight loss drugs.
[24:01] - The government's impact on healthcare.
[31:32] - The demand for healthcare workers.
[35:51] - Underinvestment in healthcare sector.
[39:19] - Michael's thoughts on the market's base case scenario.
[42:03] - Good case scenario for healthcare.
[49:04] - Bad case scenario for the healthcare market.
Quotes
[10:04] - "What's happening in the world of healthcare is that there are so many novel, potent, sophisticated drugs being developed that are really changing the quality of life of humans in a gigantic way. So, the healthcare landscape is having a renaissance, and it's not going to stop. If anything, it accelerates." ~ Michael Taylor
[27:16] - "Having a single-payer government healthcare system would very much be the absolute worst thing that could possibly happen to patients." ~ Michael Taylor
[47:22] - "There's no such thing as right or wrong in investing. It's just 'how can I generate the best returns for our investors?' That's the most important thing." ~ Michael Taylor
Links
Michael Taylor on Twitter
Simplify Health Care ETF (PINK)
Simplify Asset Management
Funkytown by Lipps
Novo Nordisk
Eli Lilly
Pfizer
Medicare
Medicaid
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Disclosure
Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.
3365-OAT-12/27/2023
