By Atul Prakash
LONDON | Wed Sep 21, 2011-11: 57-BST
A powerful investment case offer pharmaceutical shares LONDON (Reuters) - due to the free cash generation of the sector, the exposure to emerging markets and predictable demand trends, said a senior Fund Manager at British Bedlam asset management.
Felicity Smith, of the Bedlam global income, Bedlam UK and European Fund Bedlam with Richard Greenwood active, said that the Outlook for the pharmaceutical companies has been improved yet.
"Demand in emerging markets is growing and will help offset printing of patent expires in the United States." Margins remain stable, capital intensity is low and companies in the sector will benefit many opportunities for self-help, to lower costs and more targeted research, "she said."
Smith has their bets on companies such as Swiss Novartis AG (NOVN.)(VX), pipes, saying it offered a broad-based and had a cutting-edge research.
"Novartis strong sales in emerging markets and good generic and consumer health divisions generated," said Reuters in an interview, adding, she liked also French group sanofi SA (SASY.)(PA) on the grounds it was one of the highest exposures to emerging markets and had scope to cut costs.
Smith preferred US biotechnology company Celgene Corp. (CELG.)(O), cancer portfolio for his, seen as well as protected from generic competition, and added that Pfizer Inc. (PFE).(N) an interesting restructuring had history, repel with the scope to other businesses.
Chaos, who managed a total of $ 703 million, cut off agricultural chemicals in the summers, such as fair value at the fair shares reached their exposure to area, but to buy back of the stocks used market weakness in early August, said Smith.
BUY TERRITORY
"Our methodology tends to mean that we approach unsustainably high markets raise cash and then invest as market falls to buy more stocks bring area." This is what has happened in the last three months, ", said Smith.
Bedlam added to their stocks Norway's Yara international ASA (YAR).(OL), the world's largest nitrogen fertilizer manufacturer, and the world's biggest agrochemicals company Syngenta AG (SYNN.)(VX), who said Smith lately indiscriminately sold down.
Smith, whose Bedlam global income fund, for example by 8.5 percent in was until mid-September against a 11.5% fall in the MSCI all country world index.MIWD00000PUS, said it was too early for major investments in the banking sector.
"While banks in the United States and the United Kingdom, that suffer less peripheral Europe that are less dependent on wholesale funding and much did to repair their balance sheets, they will suffer in a long time of ordinarily low growth."
"Within the euro area, most of the banks remain under enabled and energy supply of wholesale funding, even without the gaping holes, is knocked out in their balance sheets as and when they are forced to their exposure to sovereign debts of Greece, Portugal, Spain and Italy completely write."
Smith saw a lot of the economic headwinds and said that most Governments in the Group of 20 were struggling with unsustainable Verschuldung--you were efforts to cope with expected to pushing global growth for some time to come.
(Editing by David Holmes)
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