AMGN - HRTS: Generating Alpha In Obesity Treatment

2024-07-25 07:00:04 ET

Summary

• The Tema Obesity & Cardiometabolic ETF is a new actively managed fund focusing on the obesity treatment market.
• The investment strategy includes a mix of cash flow-positive companies, high-growth companies, and start-ups with promising technology.
• An interview with the PM increased my understanding and confidence in the portfolio construction and strategy.
• Consensus price targets for the current portfolio point to 37% upside potential.

Introduction

Is obesity genetic or a function of a modern and wealthy society? The data suggest that plentifulness and sedentary lifestyles plus our genetic instinct to store fat for survival in leaner times have led to ever-increasing body fat, it's almost become an autoimmune syndrome. Obesity, whether genetic or environmental, leads to diabetes, and heart disease and seems to be far harder to eradicate with "willpower" or the newest diet/exercise strategy and this is where biotechnology has stepped in. The success of Novo Nordisk ( NVO ) and Eli Lilly's ( LLY ) diabetic and weight loss drugs (GPL-1) has sparked the birth of a giant market....

For further details see: