Gavekal Capital: European Pharmaceuticals Continue Outperformance, Remain Tres Cher

Friday, July 25, 2014

European Pharmaceuticals Continue Outperformance, Remain Tres Cher

As discussed in yesterday's quarterly investor call (see here for a recap), the counter-cyclicals (and the growth counter-cyclicals, in particular) are currently the most attractive group in MSCI Europe. Regular readers know that one of our favorite, knowledge-rich, heavy r&d investing groups is the Pharmaceutical sub-industry. So how are the constituents performing relative to the MSCI World?

For the most part, uptrends are intact in our point-and-figure charts:

A few names have suffered setbacks, however:

Overall, valuations remain some of the highest in all of MSCI Europe:

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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