Why Artisan Mid Cap Trimmed Health Care
Artisan Mid Cap manager Andy Stephens explains why the fund's weighting in health care has gone down recently.
Greg Carlson: One other area I wanted to touch on is a health care. This is Artisan Mid Cap Fund in particular I think has been a fund that's concentrated more on growth companies that have more stable revenue streams. Health care was a source of those companies in the past, and yet more recently the fund's weighting has gone down. Can you talk a little bit about what that's reflecting?
Andrew Stephens: A lot of it is reflecting better opportunities in other parts of the economy and other parts of the portfolio. Health care, by its nature, is less cyclical. You get longer-trending profit cycles in health care, and they tend to be less directly affected by the economy. So in the downturn, in the credit crisis, a lot of our health-care companies did their job. They held up. The earning streams were relatively stable, and they actually, in our minds, got a little overvalued.
Greg Carlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.