Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Pfizer Inc. (PFE), Anthem Inc (ANTM), Aetna Inc (AET): Swedish Fund, Healthinvest’s Top Bullish Picks In First Quarter

Anders Hallberg and Carl Bennet’s healthcare-focused fund, Healthinvest Partners AB, recently disclosed its equity holdings in a 13F filing with the Securities and Exchange Commission. After some shuffling during the first quarter, the new top picks of the fund are Magellan Health Inc (NASDAQ:MGLN), Pfizer Inc. (NYSE:PFE), Anthem Inc (NYSE:ANTM), Aetna Inc (NYSE:AET), and LifePoint Hospitals, Inc. (NASDAQ:LPNT).

Magellan Health Services Inc (NASDAQ:MGLN)

Founded in 2006, Healthinvest AB invests in healthcare companies that are market leaders in the segments that they operate in. The fund’s investing strategy thus entails that it avoids investing in companies with pending clinical experiments, which are naturally a riskier option. Moreover, Healthinvest seeks to invest in smaller-sized companies, since it believes that it provides an informational advantage owing to less analysts covering them. Through the fund’s own financial analysis, which is more focused on free cash flow than earnings, the analysts seek out the the companies trading at discounted valuations, and invests in them with a long term perspective. The market value of the fund’s equity portfolio at the end of the second quarter stood at $144.37 million.

Before we move on to Healthinvest’s top picks, it is noteworthy that the fund’s focus on small caps is the same strategy that we have been advising to retail investors for quite a while now. Through our research, we discovered that a portfolio of the 15 most popular small cap picks of hedge funds can beat the S&P 500 Total Return Index by nearly a percentage point per month between 1999 and 2012. On the other hand the most popular large cap picks of hedge funds underperformed the same index by 7 basis points per month during the same period. In forward tests since August 2012 through March 2015 top small-cap stocks beat the market by a hefty 79.4 percentage points and returned more than 130% (read the details here).

With 260,606 shares valued at $18.46 million, Magellan Health Inc (NASDAQ:MGLN) represents Healthinvest’s largest holding. Hallberg and Bennet bumped the exposure of their fund by 58% during the last quarter. The $1.94 billion healthcare management company has appreciated by nearly 18.16% year to date. Magellan Health Inc (NASDAQ:MGLN) recently completed the acquisition of privately held pharmacy benefit manager (PBM), 4D Pharmacy Management Systems, Inc. The largest stockholder of Magellan Health Inc (NASDAQ:MGLN), among the funds that we track, is Samuel Isaly‘s Orbimed Advisors holding about 1.2 million shares as of the end of 2014.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.