Bellevue Healthcare Share Discussion Threads

[jonwig] 26/3/2022 06:42

Yes it does, thanks.
Clickable link:

[xtrmntr] 26/3/2022 05:58

https://feeds.acast.com/public/shows/investorschronicleI'm not sure if the above link will work.Paul Major, manager of Bellevue Healthcare Trust (BBH), believes the future of healthcare will be very different from what we have today and looks to invest in companies at the forefront of making change possible - from those improving disease diagnosis to companies delivering care at home.  In this podcast, he tells the IC's Mary McDougall where he thinks the most important innovations are developing in healthcare, how he approaches investing in the companies involved and explains the investment case for some of the trust's largest holdings. 

[speedsgh] 22/3/2022 20:39

BB Healthcare ups gearing to tap into small stock weakness -

BB Healthcare (BBH) has changed its name but kept faith in smaller healthcare companies after the sector selloff by increasing its borrowing to take advantage of lowly valuations.

The £1bn closed-end fund, which has rebranded as Bellevue Healthcare Trust, suffered as the healthcare sector endured its longest selloff since 1994. It had been the darling of the pandemic, but small and medium-sized stocks suffered the worst of the recent downturn in sentiment.

Commenting on the investment trust’s recent annual results, fund managers Paul Major and Brett Darke were stoical about the damage the falls have done to their portfolio and said they planned to increase the gearing – or borrowing – in the fund to snap up stock bargains.

BBH reported a 10.3% total investment return for the year to 30 November, which lagged the 16.3% rise in the MSCI World Healthcare index, and the defensive sector fell further behind the MSCI World index, which advanced 23.3%.

This year has proved difficult. The shares are down 10%; the 12-month return, including dividends, has shrunk by 4.2% due to a ‘violent intra-sector rotation’ in response to high inflation; while rising interest rates, a tech selloff, and war between Russia and Ukraine have darkened the outlook for global economic growth.

Major and Darke said they were ‘somewhat lost for a compelling explanation’ as to why healthcare had shouldered such a heavy burden, although the trust’s five-year performance remains credible: a total shareholder return of 83% beats the MSCI World Healthcare return of 70%.

‘Nothing fundamental has changed in the last four weeks, or even four months,’ they said. ‘There are more people alive than before. They are older and they will get sick, with increasingly complex conditions – these are irrefutable truths.

Gearing, which stood at 4.9% of net asset value on 30 November, has doubled to 10%, according to data from Numis Securities.

‘If the last two years have taught us anything, it is that everything changes very quickly in such a febrile environment,’ the managers said.

Despite the year-to-date fall, the trust has avoided falling to a discount enabling it to issue £18.6m of shares, which combined with the £35.1m increase in borrowings has given them the cash to add to existing holdings and add three new companies ‘one each in tools, diagnostics, and medical technology subsectors’, though they did not disclose the names.

‘One of these is a repurchase of a company that we have owned before but exited on valuation grounds,’ they said.

In a post-results briefing this month, Major (above) said the healthcare sector was the best hedge against inflation, citing its strong performance against gold and the consumer prices index over the last 25 years, with the exception of the financial crash in 2008 when gold performed better.

Major, who also runs the WS Bellevue Healthcare open-ended fund with Darke, was optimistic about the sector that spends $10tn globally, buoyed by continuous and reliable demand, which will be boosted by ageing populations suffering from chronic pain.

‘While people talk about inflation and stagflation, the data is unarguable: the best hedge you’ve got against inflation is to buy the one thing that nobody wants to consume, but has no choice and will consume: healthcare,’ he said.

While the managers are anticipating a bounce-back in healthcare stocks, they said market corrections ‘can go on for much longer than one may realise’, citing the 2000 tech crash as a ‘classic example of prolonged suffering’.

‘We cannot be confident that the mid-cap healthcare rout is close to its denouement, but we can objectively discern value when we see it, and that time is now,’ they said.

[speedsgh] 02/3/2022 11:02

Paul Major, portfolio manager of BBH, is presenting on Thurs 17 March at 11am as part of Kepler's Spring Summit entitled Ideas for your ISA.

More info & registration here - hxxps://web.cvent.com/event/2ea662dc-4669-4a39-a39e-d793efc168a4/summary

[speedsgh] 02/3/2022 10:57

Thanks, jonwig.

[jonwig] 02/3/2022 10:34

The old website still works. I've added the new name to the header.

[speedsgh] 02/3/2022 10:27

Results analysis from Kepler Trust Intelligence -

The team behind BB Healthcare Trust (BBH) are bullish on the long term outlook and gearing up after big falls in share prices among healthcare stocks.

We spoke to the managers shortly before the trust released its final results for the year ended 30 November 2021, on Monday this week, and they described what they see as a 'fantastic relative opportunity' for investors in the sector after a punishing year.

The trust delivered NAV total returns of 10.3% over period, underperforming the MSCI World Healthcare Index total return (GBP) of 16.3%. Share price total returns over the period were slightly higher, at 11.4%.

The board has proposed a final dividend of 3.015p per ordinary share in respect of the financial year ended 30 November 2021 and, if approved at the forthcoming AGM, this will bring the total dividend for this year up to 6.03 - ahead of the previous year's. For the year ended 30 November 2022 the board is proposing a total dividend of 6.47p per ordinary share.

Kepler View

While BB Healthcare has clearly had a difficult and frustrating year, our view is that the trust has been hit by the indiscriminate sell-off in markets we have experienced - especially felt amongst mid and small cap stocks to which BBH is largely exposed.

When we met the managers last month they told us it was their view that "history will look back on this moment as a fantastic relative opportunity for long-term healthcare investors", and we note that the team - who have typically used gearing sparingly - have increased the level of gearing to c.10%, underlining their bullishness.

BBH offers a complimentary exposure to equity income investors, with an attractive level of dividend derived from capital, and an underlying exposure that is very different from typical income exposures to the healthcare sector…

[speedsgh] 01/3/2022 18:43

Change of Name -

The Company confirms that, pursuant to the powers conferred under the Company's Articles of Association, the Board has resolved to change the Company name to Bellevue Healthcare Trust plc with immediate effect.

The name change is to ensure consistency between the name of the Company and its Investment Manager, Bellevue Asset Management (UK) Limited. The change of Company name was made by the Registrar of Companies on 1 March 2022.

With effect from 8.00 a.m. 2 March 2022, trading will commence under the Company's new name, Bellevue Healthcare Trust plc.

The Company's TIDM, ISIN and SEDOL will remain unchanged.

[speedsgh] 28/2/2022 12:07

Final Results -

Excerpts from the Chairman's Statement, under header Performance:

Though the Company underperformed the Index over the last financial year, I hope that readers will agree that over a five-year period the Investment Manager has delivered attractive returns that compare very favourably to its peer group. The Investment Manager provides more analysis of performance elsewhere in this report; I would highlight that there were periods of the year that the Company was materially ahead of its benchmark.

Short-term variations should never change an investment process - and hence it is important to assure investors that the Investment Manager remains true to its investment process and continues to focus on bottom-up fundamental analysis to drive stock selection predicated on superior LONG-TERM returns.

Excerpts from the Chairman's Statement, under header Outlook:

Continuing on from previous reports, a big driver of market sentiment continues to be the pandemic and in that regard I make no predictions in my outlook. It is clear that this situation has thrown into stark relief that innovation is continuously needed in healthcare and perhaps the rate of that innovation is speeding up.

The pandemic has also led to a large backlog of need, thus as we 'normalise' it is likely that there will be a lot of 'pent-up demand'.

Your Board continues to believe that your Company is and will continue to be well placed to capitalise on investment opportunities in healthcare to achieve the stated investment objective...

[speedsgh] 03/2/2022 11:13

Excerpts from Jan 2022 factsheet. The whole factsheet is a worthwhile read...



What a month! January did not play out as we, or frankly anyone else, expected. This has been the second-worst month performance-wise for the MSCI World Healthcare Index since the inception of the Trust and indeed the fourth-worst month in the last 20 years.

Funereal flummery from various commentators falls short inadequately explaining the fissiparous factor behaviour visible in the market meltdown. In truth, we too are somewhat lost for a compelling explanation, but doing this job whilst maintaining sanity behoves one to accept that markets can be irrational for protracted periods. Indeed, it is what you choose to do during those difficult periods that defines you as an investor.

Thus, we are where we are. Where are we though? Nothing fundamental has changed in the last four weeks, or even four months. There are more people alive than before. They are older and they will get sick, with increasingly complex conditions – these are irrefutable truths. Whatever happens to their discretionary income, they will still consume healthcare products and services.

We firmly believe that history will look back on this moment as a fantastic relative opportunity for long-term healthcare investors and have acted accordingly...

... There are various and rather childish stock market aphorisms involving monkeys and picking bottoms, with the pithy observation that engaging in such an activity in public is unseemly and likely to cause embarrassment. This may well be true, but in the end it is part of a portfolio manager's job to do so and it is also true that embarrassment can often be quelled with sufficient pecuniary reward.

We cannot be confident that the mid-cap healthcare rout is close to its denouement, but we can objectively discern value when we see it, and that time is now. We enter February with a portfolio of undiminished quality and an unchanged investment strategy, but one that is re-weighted to take maximum advantage of any return to more typical market dynamics and enhanced with an increased level of gearing that reflects our conviction in the opportunity that lies before us.

We remain optimistic not because we are optimists, but because we are realists.

[alter ego] 06/1/2022 14:45

agreed, red ink all over portfolios so it's unlikely to be stock specific. Money being taken off the table all over.

[jonwig] 06/1/2022 14:44

All the bio-related stuff is down - look at WWWH. Just a rotation thing?

[toffeeman] 06/1/2022 14:43

Everything (virtually) is down today

[speedsgh] 06/1/2022 14:39

Any idea on the reason for the sudden pullback? Adverse news from one of their holdings?

[tonytyke2] 06/1/2022 12:57

Decided to add more or this pull back this morning. Good luck all!

[tonytyke2] 23/12/2021 00:25

Welcome Sinzu, as per my last post, I added more yesterday. BBH could also be a decent inflation defensive play imo.Have a great Xmas everyone!TT

[sinzu] 22/12/2021 11:58

Bought some today. Looking very strong. A lot of trades reported as sells or unknown are actually buys.

[speedsgh] 03/12/2021 11:16

Target total dividend -

As stated in the Company's IPO prospectus and in the Company's prospectus dated 5 November 2018, the Company aims to target a dividend each financial year equal to 3.5 per cent of the Net Asset Value as at the last day of the Company's preceding financial year.

The Company intends to pay dividends on a semi-annual basis, by way of two equal dividends, with dividends declared in July and paid in August / September and proposed in February / March and paid in March / April in each year.

For the financial year ended 30 November 2021 the Company paid an interim dividend of 3.015p per ordinary share in September 2021 and in due course the Board is intending to propose a final dividend of 3.015p per ordinary share.

For the financial year ending 30 November 2022, the target total dividend will be 6.47p per ordinary share, this being 3.5 per cent of the unaudited net asset value per ordinary share of 184.91p per ordinary share (including current financial year revenue items) as at 30 November 2021. The Board intends to declare an interim dividend of 3.235p per ordinary share, being half of the target total dividend for the financial year ending 30 November 2022, in July 2022 and intends to pay this dividend in August / September 2022. The Board intends to propose a final dividend of 3.235p per ordinary share for the financial year ending 30 November 2022, in February / March 2023 and intends to pay this dividend in March / April 2023.

Randeep Grewal, Chairman, commented:
The Board is pleased to announce that this is the fifth consecutive year of dividend growth for the Company, with an 84.9% increase in distributions over the past five years and a 7.3% increase on last year's level of distribution.

[tonytyke2] 14/11/2021 22:50

Yep, cracking investment here, topped yet again recently, this was originally chosen for my defensive portfolio.But wow, what growth and yield! Now freeing up funds to add further. Good luck to all holders.

[wad collector] 11/11/2021 22:19

Ignoring the inital Covid drop , what an impressive looking chart. Doubled in 5 yrs, reasonable yield, happy to continue to hold.

[speedsgh] 29/10/2021 12:54

Mention of BBH in this IC article earlier this week...

Get a boost from lucrative health technology -

[mw8156] 08/9/2021 20:37

hrc, one of their top holdings, being acquired by Baxter

[rambutan2] 08/9/2021 20:11

Latest monthly:

[hectorscrackhouse] 25/8/2021 11:52

Yes, Tony, I had emailed the investor relations and repeated the gesture today.

Apparently,
they do not disclose the portfolio outside of top 10 because of a decision by the independent trust board at launch as a number of institutions replicated the portfolio when holdings were disclosed impacting share prices particularly in small/mid cap names.

But they are about to launch an open ended UK OEIC version of BBH and will disclose full portfolio on a semi annual basis.

[tonytyke2] 20/8/2021 15:05

Hectorscrackhouse, I would email their investor relations team to request.By the way, John Baron in today's IC indicates increasing exposure to healthcare in his portfolios. His 2 favoured holdings are BBH & WWH.