why invest in healthcare
Offers public-market investors access to a sector undergoing a secular innovation cycle, ripe with investment opportunities and the potential for long-term capital appreciation. The tailwind of a rapidly aging population, the need for innovative approaches to cancer and other age-related diseases and a favorable regulatory environment will likely fuel industry growth for years to come.
our edge

Why NicHealth

Focus: specialize in dynamically growing small- and mid-cap companies
Insights: invest in both equities and convertibles for a holistic view of company
Discipline: combine breadth of quantitative tools with traditional fundamental equity and credit analysis
Alignment: constrain capacity to add value and invest alongside clients
Experience: principals have been managing portfolios for over 30 years
recent video
Innovations in Healthcare and Their Resulting Investment Opportunities
(4:16) Lisa Wheatley, Portfolio Manager/Senior Research Analyst, highlights some of the rapid innovations that we believe are accelerating the pace of medical breakthroughs, improving patient outcomes, and driving secular growth in many healthcare sub-sectors, e.g., more genetically targeted oncology, gene therapy to treat rare diseases, synthetic biology, and the cross-over of big-data harnessing techniques into healthcare. 
our approach

Investment Philosophy

We believe that dynamic change often creates a disconnect between a company’s future earnings power and its stock’s valuation. Growth catalysts are often not fully understood and expectations tend to be adjusted upwards gradually. We seek to exploit this inefficiency by investing in dynamic companies exhibiting signals of change that will lead to an acceleration in revenue and/or earnings growth in which our research confirms the company’s growth is sustainable and its stock is a timely investment.
inception date
January 1, 2017
Separately managed account
Lisa Wheatley
Catherine Nicholas
John Wylie

Portfolio Construction

Portfolios are actively managed to continually drive to the strongest investment ideas. Position sizes are based on the conviction in the investment thesis of each company relative to other portfolio holdings and risk exposures. Early warnings signs that suggest deterioration in company fundamentals or earnings strength lead to timely sell decisions.

Risk Management

Risk analysis is essential to minimize uncertainties and enhance potential long-term gains for client portfolios. To understand intended and unintended sources of risk, our investment team leverages quantitative tools with experience, judgment and deep knowledge of the holdings within a portfolio on a daily, weekly and monthly basis.

Typical Investment Policies

Number of Positions:  35–50
Geography:  US-listed public equities, ETFs, preferred securities, and convertible bonds
Capitalization:  Greater than $100M
Security:  Max 15%
Hedging:  May hedge healthcare-related ETFs and short individual securities to exploit short-term opportunities, up to 20% of the portfolio market value
Cash:  Transactional, typically <5% (max 20%)

Driver of Expected Return

Bottom up, research-driven stock selection. Industry weights and factor exposures are a residual of the stock-selection process.