Comments on: BB Healthcare Trust: Curing The Health System

By: Trevor

Trevor — Sat, 13 Mar 2021 12:01:57 +0000

Many thanks Stuart for taking the time to write this article. I hold International Biotechnology (IBT) and Worldwide Healthcare (WWH) and although it’s early days since I’ve invested, I’m pleased so far with their performance. There is a little bit of overlap with their holdings but not much. I guess it’s a bit like holding a Global IT, so many of them have either Microsoft or Tencent or both!
On first glance I don’t think there’s much of an overlap of BBH with either IBT or WWH.
I will take a more detailed look at BB Healthcare, interesting article.
Thank you.

By: Nick.

Nick. — Thu, 11 Mar 2021 13:31:51 +0000

Addendum: I meant to say BIOG was on a 9% discount a year ago! Sorry.

By: Nick.

Nick. — Thu, 11 Mar 2021 13:28:52 +0000

Hi; good analysis here again. I’ve never owned BBH but I have owned Biotech Growth (BIOG) for many years and every £1 I invested is now worth £5, so obviously I’m very happy and have no plans to jump ship. But I thought I’d make some comments regarding BB anyway.
The dividend yield of 3.5% is a distinguishing feature and may appeal to those seeking extra income. It probably adds some downside protection as we can see from the relative outperformance during the downturn. Personally I consider the biotech sector is one better suited for capital growth.
I don’t like trusts which don’t publish full portfolio listings because I can’t really see a reason not to. This has certainly put me off investing in other trusts before.
At the moment BBH is on a 3% premium and BIOG a 2% discount (Sharescope). So perhaps BIOG looks better value, but a year ago BBH was on 1% discount and BIOG a 5% discount, so relatively BIOG has moved further.
I’d certainly consider BBH if I was a new investor to the sector but I wouldn’t consider it a “slam-dunk” compared to others; so smaller holdings in 2/3 trusts (like yourself) could be the way to go.
Interesting analysis; thanks.

By: Global Investor

Global Investor — Thu, 11 Mar 2021 13:18:45 +0000

Very interesting review as I had not reviewed the Trust previously. I would have no issues with it except the lack of transparency on their list of holdings but can live with that as the sector breakdowns are given. Would certainly look at it as I think Genetics is going to be big in medicine going forward. I personally own one Genetic company – Fulgent Genetics (FGLT) and is powering ahead despite being very young with a bit of a wobble with the recent downturn in Tech stocks. The Europeans are the leaders in Healthcare/Pharma and new products processes so it is difficult to know which one to go for. The CEOs of the vaccine companies involved in Covid-19 are nearly all French/German. This comes from the embracing of STEM by European countries including Ireland since the 1960s. The UK unfortunately whilst they have great Universities they are not linked to the practical business world. Even the Oxford/AstraZenica vaccine involves EU/Irish lead scientists – Professors Hill and Lambe. So for me using a Trust makes sense as I am not a medical/healthcare specialist. Will consider shortly an investment in this one. Thanks

By: ITinvestor

ITinvestor — Wed, 10 Mar 2021 16:14:42 +0000

In reply to Graham Thorpe. Thanks, Graham - all fair concerns I think although I suppose you could say similar things about many other trusts as well. The lack of a full portfolio listing is the only thing that appears to be unique to BBH, as far as I am aware anyway. Best wishes to you as well.

By: Graham Thorpe

Graham Thorpe — Wed, 10 Mar 2021 15:50:55 +0000

It is of course a matter of judgement (that’s what makes it interesting), but my answers having read the piece would be: Apparent lack of transparency of holdings and some lack of clarity in other areas (“disastrous foray into NMC”); high U.S. weighting; stated disdain for more conservative potential investments; dividend policy; charges policy; arguably modest holdings by at least some of the insiders.
I’m sure it’s a question of “feel”, but happy to leave you to it… (But many thanks and good wishes to you anyway).

By: ITinvestor

ITinvestor — Wed, 10 Mar 2021 13:44:45 +0000

In reply to Graham Thorpe. Could you elaborate, Graham? Curious to know what aspects you found offputting as nothing raised any significant red flags for me.

By: Graham Thorpe

Graham Thorpe — Wed, 10 Mar 2021 13:23:11 +0000

Mmmm.. Not sure at all why the phrases “I would run” and “a mile” plus “thanks but no thanks” immediately spring to mind.