Capacity Crunch Limits Tech, Healthcare Specialty Investing


Although both TMT and Healthcare are high-performing equity sector strategies, PivotalPath CEO Jon Caplis explains that their capacity-constrained nature may lead large institutional investors to avoid them, citing the inability to put large amounts of capital to work.

To further illustrate the compelling performance and alpha-generation of these strategies, P&I cites the firm’s indices.

Specifically, the PivotalPath Healthcare Index was up an annualized 15.3% over the 10 years ended Dec. 31, representing average alpha for the universe of 11.1% relative to the S&P 500 index for the same period. Similarly, the PivotalPath TMT Index produced an annualized return for the same 10-year period of 9.6%, with average alpha of 7.1% relative to the S&P 500.



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