Complete your registration today for a chance to win £50 John Lewis vouchers in our weekly draw Enter now
Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Bellevue Healthcare. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

A new version of this profile is available. View Latest

BB Healthcare (BBH) is a high conviction, unconstrained, long-only vehicle invested in a concentrated portfolio of healthcare companies that the managers believe provide innovative solutions to what they view as ‘broken’ healthcare systems around the world.

As we discuss in the Performance section, the sell-off in markets we have experienced has been indiscriminate – especially amongst mid and small-cap stocks to which BBH is largely exposed. As a result, BBH’s NAV has underperformed over the short term, although the managers’ long-term track record against the trust’s twin objectives remains strong.

The managers’ view is that “history will look back on this moment as a fantastic relative opportunity for long-term healthcare investors”, and so have been adding to gearing (see Gearing section). The team have marginally increased the number of stocks in the portfolio (to 33), as well as invested more capital in portfolio constituents in the specialist diagnostics, biotechnology and services sectors. In our view, this illustrates their confidence in long term prospects, but also that they are truly fundamental stockpickers.

Since launch, a large part of the dividend has been funded from capital, giving the managers flexibility to pursue the best total returns they can achieve from the investments they make. The target dividend for the 2022 financial year is 6.47p, representing a yield on the current share price of 3.65%.

As a result of the volatility in markets recently, BBH’s shares currently trade on a discount of 6%, which compares with a one-year average premium of 1.2% (Source: Morningstar).

Analyst's View

BBH’s exposure to mid and small caps marks it out from peers and the benchmark but also explains the relative performance over the last six months or so. Over the long term, mid and small-cap companies are expected to grow faster than large ones, and the healthcare sector is no different. However, at times, market sentiment can mean small and mid-cap stocks can fall significantly faster than larger, more liquid stocks – especially in liquidity-driven markets. The managers are fighting these headwinds currently but appear resolute in their belief that the historically strong returns delivered from their investment process will revert.

Since launch, a large part of the dividend has been funded from capital. We observe that this enables shareholders to benefit from a regular income but does not hinder total returns by the managers having to invest in dividend-paying companies with lower growth prospects. As such, BBH offers a very complimentary exposure to equity income investors, with an attractive level of dividend derived from capital and an underlying exposure that is very different from typical income exposures to the healthcare sector.

BBH has exhibited higher volatility than its peers. However, the managers have used this extra risk well and delivered attractive risk-adjusted returns historically, with a higher Sharpe ratio than their peers. Investors who share the conviction of the manager in the medium to long term fundamental prospects of the portfolio companies may see the current discount level of 6% as an opportunity, given the long-term average premium to NAV that the shares have traded at historically.


  • Very differentiated offering, with highly active approach
  • Excellent long-term track record, with manager having added significant value through stock-picking
  • Attractive dividend yield (albeit paid from capital)


  • Narrow focus, and concentrated portfolio presents risks relative to more diversified portfolio
  • Dividend based on NAV, which means that if the NAV falls year on year, it could mean a decline (although the board could choose not to pay a lower dividend)
  • Potential to gear, combined with concentrated portfolio, can translate into high NAV volatility
Continue to Portfolio

Fund History

28 Mar 2024 Healthcare, UK valuations, and renewables
We take a look back at the final week of our ISA event…
21 Mar 2024 Fund Analysis
BBH could be poised for strong performance as the rate cycle eases…
20 Mar 2024 How to grow old gracefully (and preferably rich)...
Ahead of the final week of our event, focused on retirement planning, we consider some of the complexities of portfolio construction…
05 Mar 2024 Results analysis: Bellevue Healthcare
Reviewing a tough financial year, but the last three months give grounds for optimism...
23 Feb 2024 An underrated edge
Company meetings give managers a level of access that is difficult for individual investors to obtain…
20 Feb 2024 Waiting for the world to change
Closed-ended trusts are a simple way to access the attractive income and defensive potential of renewables infrastructure…
25 Mar 2024 Bellevue Healthcare
Paul Major
Rewatch this webinar as part of our month-long online series 'Themes for your ISA in 2024' hosted by the team at Kepler Trust Intelligence throughout March...
Watch Recording
26 Jan 2024 Heading to the polls
We look at elections around the world and what they mean for investors…
03 Jan 2024 Probably better asking an octopus
Our investment trust experts uncurl a tentacle each and choose their ‘top picks’ for 2024…
15 Dec 2023 Do obesity drugs have short legs?
BBH’s portfolio seems to offer stronger fundamentals than the hype elsewhere would suggest…
18 Oct 2023 Computer says no
Markets are fixated on replacing humans with AI, rather than maintaining them with biotech. Could this be an opportunity to rotate profits?
29 Sep 2023 Healthy fundamentals
Healthcare and biotech are out of favour despite the secular growth trends supporting them…
15 Sep 2023 Pizza Tiger
You don’t need to reinvent the wheel to deliver good returns on your investment...
23 Aug 2023 Halfway there…investing on a prayer
We provide an update on our picks for 2023 and see which analysts' prayers are being answered…
04 Aug 2023 Not going away
Macro volatility won’t change a key long-term driver for Bellevue Healthcare...
20 Jul 2023 Video interview with BBH Manager Paul Major on M&A, buy opportunities and more
We look at whether 2023 is still a 'historic opportunity' to invest in healthcare...
30 Jun 2023 Fund Analysis
BBH offers a very differentiated way to invest in the bombed-out healthcare sector…
05 May 2023 Is it time to buy healthcare?
Macro fears seem to have crimped valuations, despite the sector’s long-term growth prospects…
06 Mar 2023 Results analysis: Bellevue Healthcare
A rare discount may prove interesting to long-term investors in BBH…
20 Feb 2023 Podcast: Trust Issues #11 - Why healthcare valuations are low
We speak to Bellevue Healthcare manager Brett Darke about the state of the healthcare sector...
04 Jan 2023 Here we go again
We review our ‘top picks’ for what was a wild year and place our bets for the year ahead – which doesn’t look much calmer…
09 Dec 2022 Why healthcare stocks are here to stay
It’s been a volatile couple of years but that looks unlikely to stop tailwinds boosting the sector…
10 Nov 2022 Fund Analysis
BBH is resolutely aligned to the long-term growth tailwind of healthcare demand…
12 Jul 2022 Results analysis: Bellevue Healthcare
BBH’s managers appear resolute in their conviction, despite a challenging period for performance…
28 Jun 2022 Podcast: 2022's historic opportunities for healthcare investors
We speak to Paul Major, Portfolio Manager of Bellevue Healthcare...
14 Apr 2022 The inevitabilities: death and taxes
Biotech has had a rough ride lately but, as the world gets older and richer, our analysts think long-term secular growth is inevitable…
30 Mar 2022 You say tomato…
Do it yourself or put it into a global fund and leave it to the experts - our analyst debate the merits of each approach...
25 Mar 2022 Slides and Audio: BB Healthcare
Download the presentation and listen to the audio from our 'Ideas for your ISA' virtual Spring event on 17 March...
23 Mar 2022 Fifteen ideas for your ISA
Slides and audio from our event last week, featuring fund managers running money in every major market in the world...
07 Mar 2022 Fund Analysis
BBH’s discount has widened, and the managers' increased gearing shows their confidence in prospects…
01 Mar 2022 Results analysis: BB Healthcare
The team behind BBH are bullish on the long-term outlook and gearing up after big falls in share prices among healthcare stocks…
22 Feb 2022 Gearing up for recovery
The team at BB Healthcare think the continuing market rout for growth equities has created a fantastic opportunity for investors brave enough to weather the ongoing storm…
24 Dec 2021 Short term pain, long term gain
The team behind BB Healthcare Trust think the chaos being caused by the Omicron variant could create opportunities for long term investors…
10 Nov 2021 Fantastic growth funds (and where to find them)
We found them in India, Japan, frontier markets, healthcare and the global sector – and here they are…
10 Nov 2021 Slides and Audio: BB Healthcare
Download the presentation and listen to the audio from our 'Fantastic growth funds (and where to find them)' conference on 4 November...
01 Oct 2021 Things can only get better (and they will)
The team at BB Healthcare see brighter days ahead despite the best efforts of a sensationalist media to make it feel like doomsday…
09 Sep 2021 Fund Analysis
“Rarely better exposed to higher quality or more transformational science”...
30 Jun 2021 The long (and short) of future healthcare
We examine the implications of demographic change for investors...
07 Apr 2021 Paging Dr Alpha
The pandemic has boosted secular growth drivers behind healthcare as an investment theme...
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: BB Healthcare Trust
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 03 March...
02 Mar 2021 Results analysis: BB Healthcare Trust
After another set of strong results, we look at how BBH has positioned itself for another year of outperformance…
10 Feb 2021 Fund Analysis
BBH is a potentially interesting addition to growth portfolios and for investors looking for income...
09 Jul 2020 The next big thing: two mega-trends that everyone should own
Tech seems to beat every other sector hands down – in both up and down markets – but nothing lasts forever. Where else should investors be looking for secular growth themes?
17 Jun 2020 Fund Analysis
BBH has a differentiated approach to a secular-growth theme...
View all

Welcome to Kepler Trust Intelligence

Please enter a valid email address
Please enter a valid password
Please enter a valid email address
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
Please enter a company name
Please enter a location name
Please choose an option
Please enter a platform
Please choose an option
Please enter a trust
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
Please select an option
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
Please enter your first name
Please enter your last name
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
Please enter a valid password
Please enter a valid password
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.