Healthcare Sector Investment Strategy
The following article is from the most recent Mutual Funds Newsletter. The Newsletter is delivered to all direct shareholders and published on a quarterly basis.
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The three initial goals of healthcare reform that President Obama highlighted during his candidacy were reduced costs, improved quality, and expanded access, but the bill that was passed does very little to address cost and quality. While no strategic business decision, merger/acquisition, single piece of legislation, or even series of incremental bills, could ever deliver 32 million brand new customers to a single industry in one fell swoop, the Patient Protection and Affordable Care Act attempts to do just that. Obviously, a lot is likely to change between now and when the majority of the benefits begin in 2014, but the healthcare sector will be impacted by this legislation.
The three initial goals of healthcare reform that President Obama highlighted during his candidacy were reduced costs, improved quality, and expanded access, but the bill that was passed does very little to address cost and quality. While no strategic business decision, merger/acquisition, single piece of legislation, or even series of incremental bills, could ever deliver 32 million brand new customers to a single industry in one fell swoop, the Patient Protection and Affordable Care Act attempts to do just that. Obviously, a lot is likely to change between now and when the majority of the benefits begin in 2014, but the healthcare sector will be impacted by this legislation.
Continue to the complete article.
June Markets in Review
After a solid start to the year, domestic equity markets retrenched again in June following weaker performance in May. Large cap stocks performed best during the month as investors took shelter in more defensive names.
In fixed income markets, taxable bonds had a solid month as represented by the Barclays Capital Aggregate Index, which gained +1.6 percent in June. Treasury securities were in particular demand as fears of a double dip recession rose. Municipal bonds were roughly flat in June.
MMAF Awards 10,000th Grant
In a ceremony at the Minnesota State Capitol on March 10th, Minnesotans’ Military Appreciation Fund Co-founder General Denny Schulstad, Chairman Roger Sit, Major General Rick Nash, and Minnesota Governor Tim Pawlenty presented a $500 grant to Army National Guard Specialist Sasha Bell, the Fund’s 10,000th grant recipient. MMAF has disbursed grants totaling more than $6 million since its inception in August 2005.
MMAF is a statewide fundraising initiative by the citizens of Minnesota for Minnesota military personnel and their families. MMAF is a non-partisan, volunteer-run, non-profit 501(c)(3) corporation formed to raise money to provide cash grants as a “thank you” to all Minnesota military personnel who have served in a combat zone since September 2001. To donate or learn more about the Minnesotans’ Military Appreciation Fund, please visit the website at www.thankmntroops.org.
Sit Mutual Funds founder Eugene Sit was the lead founder of the MMAF. Sit Investment Associates is a supporter of the MMAF.
