Portfolio Manager, Chris Scarpato, shares his opinion on the impact of the GLP-1 wonder drug phenomenon on different sectors.
We like CPAP maker ResMed, and bought it after it sold off 40% in 2023. The drop was fueled by speculation that GLP-1 weight loss drugs would mean the end of sleep apnea. We didn’t share this view. Sleep apnea has many causes beyond obesity.
In this ausbiz interview, Chris explains why we sold Ozempic-maker, Novo Nordisk, after securing a 35% annual return for our clients over the past five years, and bought ResMed.
John Neff, the legendary contrarian investor, once said, “It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognised.”
We’re quite content to look through the hype often caused by thematic investment theses and be the contrarian in the room.