Polar feels the chill as investors leave over Democrats worries

Fund manager Polar Capital’s flagship healthcare fund saw big outflows over fears US Democrats will crack down on the pharma sector if they win the White House.

Polar’s healthcare fund, which has 75% of its cash invested in US stocks, shrank by £300 million between March and September to £1.9 billion.

This was caused by fears Democratic candidates, including recently announced Michael Bloomberg, will win next year’s presidential poll.

Democrats have long threatened to cap drug prices. Pharma stocks fell ahead of the 2016 election when candidate Hillary Clinton threatened a clampdown.

Those fears have prompted Polar’s investors to shy away from healthcare and withdraw money from the fund, said chief executive Gavin Rochussen.

“Typically whenever you go for an election in the US you will see healthcare come under pressure because people take money out of the healthcare sector,” he said.

“More than three quarters of the healthcare fund is in US stocks and we see this every time. You come up to a US election you will see clients being wary on healthcare.”

Funds under management fell to

£14 billion at the end of October, down £300 million in four weeks.