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Profit Funds’ Eugene Profit on how the potential health-care law could impact investors’ portfolios.
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Court ruling today on the health care law it's imminent but could come within days we've got a money manager though to tell you.
How the decision no matter what it is could affect your investments and if you can trade in advance of that.
Eugene profit is the founder of company funds which has nearly two billion dollars.
In assets under management she did she can you -- bets in advance of the news.
Well list they cut banks admit that that's a little bit difficult but I I think you can go where we do a little bit from consensus that profits we think that.
-- either -- -- decision comes down.
-- is going to be somewhat beneficial to the health care sector because on the market dislikes uncertainty more than anything else.
And so you can certainly position yourself in some names that -- do a little bit better depend on what the outcome is but I think overall.
Com hearted decision comes down the healthcare sector will be a little bit positive.
OK so we brought you -- give us ideas here and let's break down the scenario scenario number one if the law is upheld.
Who stands what names out there that are publicly traded stand to benefit that our investors can say I want to buy that.
Well see I think surprisingly well both well -- that not actually will benefit the laws upheld then maybe two to 5%.
-- -- matter most investors think that that would not.
Com be the case because they're they're concerned about the additional individuals that -- -- -- the roles but because the majority of their revenue comes from.
On commercial plans I don't think it's -- impact operate.
Since too much now if if it isn't upheld do those two names stand to get slammed is that something if people are are betting here they should short if they believe that parts -- or all of this plan is not -- No just the -- today I think that if they that the plan is completely overturned on these two stocks tend to benefit.
Fifteen to 30% -- based on relative valuations com -- in -- trading near their historical loans because of the confusion.
Around the health Carol -- where they really have a problem.
Is that certain provisions of the on health care act there are struck down -- individual mandate.
Bomber struck down date they contend they go down 15% of crank but either extreme I think is beneficial to both of these things well.
Let's go to that that point about it but if a portion of it is struck down -- a portion of the health care plan.
Sliced and diced out are their names that you expect can really get hurt aside from a WellPoint for example.
Well I I think that you certainly F bomb.
The Medicare provisions this struck down with respect to the states I think on some of the -- on hospital companies -- Suffer.
Say like HCA healthcare because essentially on -- bill's provisions.
Of the demand for healthcare services is probably gonna go down it and it tightening budget environment on essentially.
They'll -- that revenues just gonna decline -- so I would stay away from hospitals.
-- bear I think I would look more towards on the pharmaceutical names large cap pharma on.
The you don't kill -- is not that high so somebody a diversified.
Bomb -- many -- like Johnson Johnson Bristol-Myers Squibb and should be OK -- and a mixed on resolution.
But.
I think I would deathly still with.
And hospitals fascinating to watch and again as soon as that report comes out as soon as that decision from the High Court comes we will happen and we'll be watching all the stocks that are related to -- you Jeanne thank you very much.
