Stick With What’s Working – Stick With Japanese Health Care by Bryce Coward, Gavekal Capital

Japan has been the forgotten equity market this year despite the impressive gains seen year to date. Indeed, on an equal weighted basis and in USD terms Japan is the best performing country in the developed markets as table 1 shows. It’s also the best performing major market by a mile with France coming in at only +4.2%. And within Japan, it been the Health Care stocks that have been the leadership group. As chart 1 shows, the Japanese Health Care sector has outperformed the MSCI World Index by about 23% so far this year. That’s because, as table 2 shows, every stock in the MSCI Japan Health Care sector has posted a gain and only 6 out of 23 stocks have a gain of less than 10%.

Japanese Health Care

Japanese Health Care

Japanese Health Care

Disclosure: The above mentioned securities may be in our current portfolio. Please refer to our website for a current list of our holdings – http://www.gavekalcapital.com/ucits/