HBM Healthcare Investments (previously HBM BioVentures, renamed in 2012) aims to generate long-term gains through investment in private and public companies in the human medicine, biotech, medtech and diagnostics sectors, and related areas. It invests worldwide, predominantly in private companies, either directly or through funds, and many of its publicly listed holdings began as private equity investments.
HBM Healthcare Investments’ (HBMN’s) portfolio is still in line for a positive FY20 (NAV TR +13.2% at 24 March 2020 compared with the 31 March FY19 year-end), with the share price largely flat (+1.3%) over the 51 weeks despite the recent global stock market sell-off. Its managers attribute the relative strength to a combination of strong IPO activity from the private portfolio, taking profits in some listed holdings as markets peaked in February, and hedging (through short index positions) in the public portfolio, which generated proceeds of c CHF45m as indices declined. The team is remaining prudent with regard to new private investments (only one has been made so far in 2020), in expectation of more attractive valuations later in the year, but is willing to deploy some of its large cash pile in response to value opportunities in listed markets. Meanwhile, it remains on track to declare a 3–5% distribution for FY20.