NONOF - The abrdn Healthcare Opportunities Fund Is Due For A Breakout
2024-02-20 11:00:28 ET
Summary
- Healthcare stocks have seen a better 2024 so far this year than the entire 2023 and 2022 years combined.
- If you go back 2 calendar years, the broad-based Health Care Select Sector SPDR® Fund ETF was still down slightly on a total-return basis. But in 2024, it is now up +6.8%.
- And you wouldn't be the only-one if you thought that the healthcare sector may just-be getting started with a rebound this year. Heck, Eli Lilly is already up 34.4% YTD.
- Aberdeen, which recently took over the sponsorship of 4 healthcare and biotechnology CEFs from Tekla, just announced an increase in distributions in 3 of those funds.
- And the one that I believe is now due for a breakout to the upside is the one that Aberdeen just increased its distribution by a whopping +60%.
Aberdeen has already made some big moves since taking over the management of four of the previously managed Tekla healthcare and biotechnology CEFs on October 27th, 2023 .
Perhaps the biggest change came just the other day on February 9th when distribution declarations for February were announced and Aberdeen increased the distributions for the abrdn Healthcare Investors ( HQH ) fund, $17.41 closing market price , and the abrdn Life Sciences Investors ( HQL ) fund, $14.10 closing market price , by 25% and increased the distribution for the abrdn Healthcare Opportunities Fund ( THQ ) , $19.44 closing market price , by a whopping 60% .
Usually, if a fund increases its distribution by that much, you would see an immediate jump in market price and indeed, THQ did open up over $20/share the next business day on Monday, February 12th, and got as high as $20.19 that day....
The abrdn Healthcare Opportunities Fund Is Due For A Breakout