The broad market rose modestly in the second quarter of 2018, and Healthcare stocks performed about in line. Shares of some generic drug makers, which had been out of favor, rose sharply, as some incrementally positive news on pricing hit the tape; the Saratoga Health & Biotechnology Portfolio has significant exposure there. The drug distributors, another area of focus for the Portfolio, saw their values decline, in part because the market continues to fret about new distributors coming online. Our read is that given the complex and highly-regulatory nature of the pharmaceutical industry, the potential of new distributors disrupting the industry is being overestimated. The distributors now offer a free cash flow yield north of 10%, which we believe is a very significant spread versus the market. In addition to generics and distributors, the Portfolio has exposure to pharmaceuticals, medical devices, pharmacy benefit managers, insurers and biotechnology.
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. 7/18 © Saratoga Capital Management, LLC; All Rights Reserved.