Sven Borho has stepped down as lead portfolio manager of Worldwide Healthcare Trust (LON:WWH) with immediate effect. Borho was a founder of the trust’s New York-based manager OrbiMed Capital.
He has also been a named manager on the £1.35 billion cap fund since 2013. So how worried should investors be by his sharp exit?
Bye bye Borho
Sven Borho has been involved in the trust fund since its 1995 launch, although he did not become a named manager until 2013. He has been replaced by Trevor Polischuk, Worldwide Healthcare Trust’s co-manager since 2015.
Geoff Hsu, lead manager of Biotech Growth Trust (LON:BIOG), another fund that OrbiMed steers, has been appointed co-manager.
Worldwide Healthcare Trust chairman William Hemmings commented: ‘The board would like to thank Sven for the significant contribution he has made to the company over many years as the lead portfolio manager.’
Reasonably uncommon
‘Given this long tenure, his decision to step back from the industry should not come as a huge surprise,’ explained Winterflood’s Emma Bird.
However, she acknowledged that the immediacy of the team changes with no stated handover period is ‘reasonably uncommon’.
Having said that, Bird recognised Polischuk’s ‘significant experience and expertise in this area, including having a PhD in neuropharmacology and gross human anatomy and having been co-manager of Worldwide Healthcare Trust for over 10 years’.
In a separate statement, Biotech Growth Trust confirmed there was no change to its portfolio management arrangements. ‘Geoff Hsu remains lead portfolio manager of the company, supported by Josh Golomb as co-portfolio manager,’ said chair Roger Yates.
History shows that a change in lead manager can have a big impact on a trust’s performance, for better or for worse.
But there are many factors that impact a fund’s performance. And just because one manager is the face of a portfolio, it doesn’t mean they can take all the credit for the performance.
With regards to Worldwide Healthcare, this isn’t a case of an entire team jumping ship. We think the trust, whose top 10 includes AstraZeneca (LON:AZN), Eli Lilly (NYSE:LLY) and Novartis (SWX:CH), remains in good hands.
Hsu is already manager of Worldwide Healthcare’s sister fund Biotech Growth. He is also highly experienced, having worked at OrbiMed since 2002.
Winterflood’s Bird has ‘no concerns over the impact of these changes on the strategy or performance of Worldwide Healthcare Trust, with Geoff’s biotechnology specialism complementing Trevor’s focus on pharmaceuticals and broader healthcare themes.’
Learn about Worldwide Healthcare Trust here: https://www.worldwidewh.com/
