Top 5 Healthcare Stocks the Experts at Sphera Global Healthcare Fund Are Buying

1. AbbVie Inc. (NYSE:ABBV)

Sphera Global also made a large purchase of AbbVie Inc. (NYSE:ABBV) shares during Q3, nearly doubling the fund’s exposure to the stock as far as its 13F portfolio is concerned. Sphera Global bought 230,100 shares of ABBV during the quarter, giving it a total of 596,294 valued at $64.32 million at the end of September. Hedge fund ownership of AbbVie Inc. (NYSE:ABBV) has grown by 55% over the previous three years as of Q3 and hedge funds have been cashing in over the latter two years of that stretch as ABBV shares gained nearly 70%.

In its Q3 2021 investor letter, Miller Howard Investments pointed out that while it’s optimistic about a broader recovery, it has continued to balance out its cyclical holdings with stable dividend payers like AbbVie Inc. (NYSE:ABBV), which ranks as one of the 5 Most Popular Dividend Stocks Among Hedge Funds. The fund likes AbbVie’s strong balance sheet and cash flow and believes investors have been overly pessimistic about the company’s potential to release blockbuster drugs in the future.

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter and mentioned AbbVie Inc. (NYSE:ABBV). Here is what the fund said:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”

You can also take a peek at 10 Best Healthcare Dividend Stocks and Top 15 Dividend Stocks With Upside Potential.

Follow Insider Monkey on Twitter