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Dec 15, 2018

A Roadmap for Effective Healthcare Investing: Navigating the Minefield

A Roadmap for Effective Healthcare Investing: Navigating the Minefield

Healthcare Investing: Large, diverse, and growing sector


The U.S. healthcare sector is a critical and expansive part of the national economy, characterized by its resilience to economic downturns and demographic trends like the aging Baby Boomer population. As a substantial component of the U.S. GDP, it offers myriad investment opportunities, especially in profitable, publicly-traded companies that tend to be less risky compared to other segments within the sector.


With healthcare projected to grow to $5.7 trillion by 2026, around 800 publicly-traded companies on major U.S. exchanges offer potential for investors, particularly those interested in impact investing. The sector's stable history of outperforming broader market indices underscores the importance of strategic investment choices in navigating its complexities and capitalizing on its growth.


Access the full report to gain comprehensive insights into the opportunities and strategic considerations in the US healthcare sector, empowering your investment decisions for desirable returns with manageable risks.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • The Healthcare Investing Environment

  • The Investors’ Organizational Framework

  • Case Study: Risk and Return Metrics for Biotech Sub-Sector

  • Risk Highlights – “The Minefield”

  • Why Invest in Profitable, Publicly-Traded Healthcare Companies

  • Other Critical Factors in Healthcare Investing




Thanks to our Contributor

Pavadi Capital

Pavadi Capital LLC manages investment funds focused on finding underappreciated, value-oriented investment opportunities across the large, diverse and growing U.S. healthcare sector. Pavadi's distinct focus is the culmination of efforts to identify a durable way to generate returns and manage risk by investing exclusively in profitable, publicly-traded healthcare companies.

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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

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