€1318.2m market cap
€189.4 last close
HBM Healthcare Investments (previously HBM BioVentures, renamed in 2012) aims to generate long-term gains through investment in private and public companies in the human medicine, biotech, medtech and diagnostics sectors, and related areas. It invests worldwide, predominantly in private companies, either directly or through funds, and many of its publicly listed holdings began as private equity investments.
HBM Healthcare Investments (HBMN) has reported extremely strong results for the first half of FY19 (to 30 September), with net earnings of CHF177m. While market conditions have turned negative in October, HBMN’s portfolio of private investments (c 36% of the total) and a market hedge covering c 20% of the listed portfolio should help to limit NAV volatility if the sell-off is prolonged. Results have been buoyed by good clinical data and a number of successful IPOs from the private portfolio, and HBMN’s managers are focused on finding new private opportunities to replace those now in the public portfolio. Ten new investments in H119 were diversified by clinical focus and geography (US, Europe and Asia). HBMN’s shares have re-rated substantially over the past year, arguably as a result of the ongoing evidence of successful execution of its strategy, as well as the high distribution policy (c 5% of NAV paid out each year).