VL Capital Management 
Health Care Sector Equity Portfolio  
 

Overview
 
The VL Capital Health Care Sector Equity Portfolio invests in the common stock of health care companies domiciled in the United States. All positions in the portfolio are equal-weighted and the portfolio is rebalanced on a quarterly basis.
 

  • Concentrated exposure to U.S. health care companies
  • Equal weight methodology enhances diversification
  • Emphasis placed on value stocks as opposed to growth

Top Positions
 
Two portfolio names we are currently bullish on include Align Technology (ALGN) and Zoetis (ZTS).

Align Technology is a $17 billion company with a promising future in medical devices. Align makes Invisalign, the popular invisible orthodontic product that’s increasingly taking share from braces as a less invasive way to correct crooked teeth. After slowing growth in the third quarter, ALGN stock fell over 40 percent. Shares seem to have found their footing in early 2019 though, and with market share only around 13 percent, ALGN should still have years of potential growth ahead. Zero debt, plus a recent deal to take a large stake in up-and-coming competitor Smile Direct Club, underscore why ALGN continues to see gains.

Zoetis, since its 2013 spin-off from Pfizer (PFE), has done quite well for itself as a standalone company. As a market leader in animal medicine, Zoetis is differentiated in a market full of companies trying to do the same thing. In its most recent quarter, revenue grew 10 percent and earnings per share jumped 16 percent, as sales of companion animal products in the U.S. grew 20 percent. Dermatology products and parasiticides drove much of the growth. Though livestock vaccines used to make up the majority of ZTS’s business, the bull market in household pets, driven increasingly by millennials, makes Zoetis stand out in the health care space.

 
Performance1,2 
AS OF 03/31/2019

YTD 1yr 3yr 5yr
VLC Health Care Sector Equity 11.17% 13.00% 36.66% 67.86%
Key Information
 

First Value Date2 January 2, 2014
Dividend Yield 0.53%
Management Fee 1.00%
Manager VL Capital Management
Account Structure Separately Managed
Custodian Interactive Brokers

 


 
Documents
 
Portfolio Fact Sheet
 


 
Contact Us 
 
Telephone: (407) 412-6298 
Email: info@vl-capital.com
 

 
 


 
1. The information presented herein is for informational purposes only about VL Capital Management’s investment portfolios and is not intended as a solicitation to invest. All returns are provided net of management fees. Past performance is not an indication or guarantee of future results. Actual performance may be higher or lower than performance data quoted.
 
2. The First Value Date is the first day for which there is a calculated value (either live or back-tested) for a given portfolio. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of a methodology and selection of constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of a strategy. Actual returns may differ from, and be lower than, back-tested returns.