A prescription for healthy returns

Wed Jun 19, 2013



China’s healthcare industry is thriving in spite of a slowing economy – opening new investment vistas for global hedge fund managers, despite some already rich stock valuations in the sector


Chris Ruffle Jim Fong
Joseph Zeng Ronald Chan
Healthcare spending in China, the world's second largest economy, is estimated to hit a record $1 trillion in 2020 as compared to about $400 billion at present - and industry experts expect that the nearly 20% annual growth witnessed by the country's pharmaceutical market in the last decade could continue for several years more.

The dizzying pace at which China's healthcare industry has grown has not gone un-noticed by the global hedge fund community - which is constantly on the lookout for new, rich sources of alpha.

New York-based hedge fund shop, Fortress, for example, announced a plan to invest $1 billion in senior care in China, while Orbimed Advisors has been considering the launch of a dedicated new Asian healthcare fund.

It is for this reason that the China healthcare industry has emerged as a bright spot for money managers amid...

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