Crib Notes for Midterms

With the 2018 mid-term elections “just” 8 months away, we remind investors that election years can create heightened uncertainty for managed care and facilities stocks. Current voter attitudes appear to favor stable healthcare policy (which we view as a positive for our healthcare coverage universe), but headline noise can create volatility. More importantly- the volatility starts well before election day so it’s time to get ready.  Below we show the stock price movements of our coverage universe in the 6 months and 3 months leading up to the elections. We show below the higher levels of volatility leading into elections and also show that hospital companies have broadly underperformed the market leading up to the elections, while managed care companies have broadly outperformed the market in the past 10 elections. We have a ton more data here at Nephron including performance leading into the elections, so just let send us an email at