Secular development trends in the UK specialist care segment and a nimble investment philosophy have allowed the Montreux Healthcare fund to leave behind an average manager’s 20% return in the pharmaceuticals & health care segment.This is according to Piers Sword, partner at Montreux Capital Management, whose fund is presently the fourth-best performer in its group, having returned 62.2% in the US dollar terms over the last three years.
‘We only invest in care for adults with learning disabilities and mental health issues, the elderly, attained brain and spinal cord injuries,’ stated Piers Sword, partner at Montreux Capital Management.
‘There are better diagnosis and understanding of these circumstances and better treatment around refining and enrichment of lives,’ People with learning disabilities are one of the fast aging sections of the UK’s population because survival percentages are a lot higher now than they were in the past, rendering to Sword.
Moreover, people are living more active and more hazardous lifestyles, he noted, which is having an influence on the amount of demand for specialist care businesses. A growing cultural consciousness around mental health issues has made people more delicate towards these areas, which in turn upsurges demand specialist care offerings.
Because the businesses in this space typically depend on institutions for revenues, such as local establishments or clinical commission groups like the NHS, as well as or insurance companies where there is a component of culpability, Sword said that the risk to funding changes is marginal.
‘This gives us a strong, predictable funding stream,’ he stated. The team takes an active attitude to acquire companies in this segment and then uses in-house expertise to cope with the assets better before then selling the asset.