A reverse fund that outperformed 97% of its peers bets on healthcare stocks, expecting the sector to make a comeback

A reverse fund that has outperformed 97% of its competitors has been buying healthcare stocks, betting that this underperforming sector will "turn the tide" this year. MFS Meridian Funds - Reverse Value Fund purchased Thermo Fisher Scientific and Becton Dickinson in early summer, believing their valuations were too low. As of August, healthcare stocks accounted for 12% of the €2.7 billion fund's position, up from 6.9% at the beginning of the year. "Whether it's medical technology instruments or large pharmaceutical companies, they are facing cyclical and regulatory issues," said fund manager Anne Christine Farstad. "For these stocks, this is a unique period of various misfortunes."