The $768 million Fidelity Select Medical Delivery Fund (FSHCX) leads all equity funds with a 24% return this year through May 9, according to a Morningstar ranking. It has a 39% return over the past 12 months, but it should be noted that the fund lost 44% of its value in 2008 when the stock market collapsed.
Select Medical Delivery's volatility is due to its narrow agenda: Managers may invest only in health insurers, hospitals and other health-services providers. The fund, which comprises 64 holdings, has been managed by Andrew Hatem since February 2009.Medco Health Solutions (MHS), the nation's largest pharmacy-benefits manager through its mail-order pharmacy and network of retail pharmacies, is the fund's largest holding at 10%. Medco's shares are up 4.9% this year. Express Scripts (ESRX), at 8.9% of the fund's assets, is the No. 2 position. The company competes directly with Medco. UnitedHealth Group (UNH) makes up 7% of Select Medical Delivery. The company's stock is up 40% this year. UnitedHealth, with 77 million subscribers, offers risk-based health insurance, non-risk-based plan management for self-insured employers, Medicare and Medicaid plans, pharmacy benefits and database and consulting services. Its subsidiaries include UnitedHealthcare, OptumHealth and OptumRx. One of the hottest performers for the fund is Healthspring (HS), up 65% this year. The company is a Medicare-focused managed-care organization that provides health benefits to 162,000 subscribers throughout Tennessee, Texas, Alabama, Florida, Illinois and Mississippi.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV