One of the differentiators of ROBO Global’s HTEC index vs. other healthcare indices is that the index undergoes a quarterly rebalance. This frequency enables the index to capitalize on the movement that takes place during each quarter in terms of share gains and losses.
The ROBO Global Investment Committee also utilizes the quarter rebalance periods to add or delete companies from the index. Companies must undergo a rigorous review, through which a score is determined. Those who pass the scoring minimum and fundamental screens are included in the index, and those who fail to meet the minimum criteria are removed.
Amidst the current market sentiment, ROBO’s research analysts placed a particularly stringent focus on the loss-making companies in the Index to ensure they have what takes to weather the current storm, maintain their market position and technological advantages, and are delivering on their internal targets. As a result of our updated scoring this quarter, five companies have received a score downgrade resulting in subsequent removal from the index. Following this rebalance, 76.5% of the companies in the index will have a positive Forward EPS, up from 69.4% prior to the rebalance. Given the magnitude of growth opportunities in healthcare tech, we continue to see very strong potential for multiple expansion opportunities among the remaining companies in the index.
The following five companies have been removed from the index based on reduced HTEC scoring.
Akoya Biosciences Inc, an emerging genomics company focused on spatial biology, continues to meet and exceed its targets. However, the company’s liquidity fails to meet the minimum threshold to remain in HTEC and has been removed.