During the fourth quarter of 2016, Healthcare stocks declined while the broader market rose, capping a year in which the sector struggled mightily. After years of outstanding performance by Healthcare this was not totally unexpected. The Saratoga Health & Biotechnology Portfolio held up better than many, given the Portfolio’s relatively more conservative positioning.
With Donald Trump winning the presidency and Republicans controlling Congress, there is talk of repeal of the Affordable Care Act. We believe wholesale repeal of the law is unlikely, but that changes to the law are probable. Healthcare stocks did rally immediately after the election, as investors expect less regulatory pressure on the sector. Even with a GOP-dominated federal government, pharmaceutical pricing will continue to be an issue, but extreme controls appear to be off the table. The Portfolio currently has exposure to pharma, specialty pharma, medical devices, managed care, distribution and other services, and biotech.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.