Here are three things to know.
1. U.S. fund managers from Fidelity, Gamco, Thornburg and other large firms said they expect President Trump to keep the broad outlines of the ACA in place, even with the president signing an executive order Friday designed to weaken certain provisions of the law in hopes of reducing its associated economic burden.
2. Therefore, according to the report, fund managers of large firms are purchasing shares of hospitals, health insurance companies and biotech firms facing uncertainty as a result of the current political environment.
“They may do enough to try to rebrand it as Trumpcare, but I just don’t think it will be that dramatically different from what we have today,” Jeff Jonas, a portfolio manager at Gamco Investors in Rye, N.Y., told Reuters. “The executive order itself was very vague, and it’s a little hard to say at this point what actual effect it will have.”
3. Still, fund flows to the iShares US Healthcare ETF, a widely held exchange traded fund that tracks the healthcare industry, fell 4.8 percent in the week ending Jan. 11, according to the report, which cites Lipper data. Therefore, investors as a whole appear hesitant to buy healthcare stocks, the report notes.
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