Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
HBM Healthcare Investments
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
==Performance: Stabilising after a more difficult year== For the financial year ended 31 March 2022, HBMN posted negative NAV and share price total returns of -3.6% and 13.2% respectively. Performance had been positive in the first three quarters of FY22 but was negatively affected in the last quarter (calendar Q1) as worries over inflation, recession, commodity prices, lockdowns in China and the Russian invasion of Ukraine caused a broad-based sell-off in ‘growth’ sectors such as technology. While the NAV has largely stabilised so far in FY23, HBMN’s share price continued to fall in April, leading to a 12-month share price total return of -26.5% versus -3.7% for the NAV (Exhibit 8). However, May has been more positive, with the share price up 7.4% and the NAV up c 1%. While focusing on one-month performance is entirely inappropriate from a long-term investment perspective, it may serve to illustrate the start of a pick-up in sentiment. On a long-term basis (Exhibit 9, right-hand chart), HBMN’s strong performance record remains very much intact, with annualised share price and NAV total returns (in Swiss francs) of c 17–23%, compared with c 11–14% pa for the MSCI World Health Care Index. One of the benefits of holding unlisted investments is that they are not affected on a day-to-day basis by stock market gyrations. HBMN’s valuation methodology for private investments means that most are valued at book cost unless an external funding round establishes a new ‘price’. During FY22, two of the larger private investments, Swixx Biopharma and ConnectRN, saw their valuations increased by CHF75m and CHF38m, respectively, as the result of funding rounds, accounting for the majority of the CHF129m increase in the value of the private portfolio. '''Exhibit 9a: Price, NAV and benchmark total return performance, one-year rebased'''<ref>Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.</ref> [[File:Price, NAV and benchmark total return performance, one-year rebased2.png|400px]] '''Exhibit 9b: Price, NAV and benchmark total return performance (%)'''<ref>Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.</ref> [[File:Price, NAV and benchmark total return performance (%)2.png|400px]] The funds portfolio declined in value by CHF35m, mainly as a result of falls in the value of funds’ listed equity holdings, while the public portfolio saw broad based declines, although the two largest (ex-private) holdings – Cathay Biotech and Harmony Biosciences – both did well, adding an aggregate CHF186m and limiting the overall loss on public holdings to CHF82m (c 3.8% of opening NAV). The majority of the losses came from oncology companies with clinical development candidates, many of which were ex-private companies that had come to the public markets via IPO in the past two years. The managers note that in most cases these losses came after significant gains in previous years, and that clinical developments are largely proceeding according to plan. {| class="wikitable" |+Exhibit 10: Share price and NAV total return performance, relative to indices (%)<ref>Source: Refinitiv, Edison Investment Research. Note: Data to end-April 2022. Geometric calculation.</ref> ! !One month !Three months !Six months !One year !Three years !Five years !10 years |- |Price relative to MSCI World Health Care |(15.4) |(23.5) |(33.5) |(34.8) |12.3 |44.3 |119.4 |- |NAV relative to MSCI World Health Care |(0.2) |(11.2) |(13.3) |(14.6) |14.8 |28.3 |68.6 |- |Price relative to NASDAQ Biotech |(10.6) |(15.7) |(16.0) |(11.3) |45.7 |104.3 |152.8 |- |NAV relative to NASDAQ Biotech |5.5 |(2.1) |9.5 |16.2 |48.9 |81.7 |94.2 |- | Price relative to MSCI World |(12.0) | (17.0) |(28.5) |(28.7) |22.3 |52.5 |177.4 |- |NAV relative to MSCI World |3.8 | (3.7) |(6.7) |(6.6) |25.1 |35.6 |113.2 |} '''Exhibit 11: NAV performance versus MSCI World Health Care Index over five years'''<ref>Source: Refinitiv, Edison Investment Research.</ref> [[File:NAV performance versus MSCI World Health Care Index over five years.png|600px]] As shown in Exhibits 10 and 11, the past 12 months have been a more difficult period of relative performance versus the broad healthcare equity market and the MSCI World Index, although HBMN’s longer-term performance record versus all comparator indices remains compelling in both share price and NAV terms.
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)