Trends Watch: August 17, 2017
August 17, 2017
By Elana Margulies-Snyderman
EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.
This week, Elana talks to Eric Evans, Chief Investment Officer, Orchard View Capital Advisors.
What is your investing outlook?
On both the long and short side, we are looking for companies with misunderstood growth trajectories, cost structures and product life cycles, as well as under- or over-appreciated pipeline optionality. We are keenly focused on big inflection points. As the expectational gap between our differentiated view and that of consensus closes, this value should get reflected in the price. There are always uncorrelated long and short opportunities within the health care sector to be pursued, which motivates us to find them and keeps things interesting.
What is your outlook for health care?
We are generally constructive on the biopharma sector, as we think a number of headwinds/concerns mainly around drug pricing and Trump twitter risk that have weighed on the sector for quite some time are priced in and have begun to dissipate. At the same time, we do think the small and midcap universe presents a fertile potential ground for M&A consolidation.
What keeps you up at night?
Currently, I have no crying newborn babies. That said, we fear the unknown, but the biggest thing that keeps us up at night -- we worry about risk when there is a ton of complacency and it appears broadly as if the markets generally seem NOT to be worried.