Gartmore US opportunities sees more in UnitedHealth

The question of US healthcare reform has gained renewed prominence thanks, in large part, to Democratic presidential hopefuls and the controversial film SiCKO by documentary maker Michael Moore. Among major industrial nations, the US lacks universal healthcare coverage, a goal variously pursued by the likes of Theodore Roosevelt and Harry Truman.

While the question of healthcare reform will remain challenging, Marsico Capital Management, subadviser to the Gartmore US Opportunities Fund, has demonstrated a different approach to healthcare stocks. For instance, the Fund holds UnitedHealth Group, the Minnesota-based diversified health and well-being company. According to Cory Gilchrist, the Fund’s manager, “UnitedHealth has a technology platform that allows the company to mine data better than its peers, giving it a lower cost structure and making it more like a Chicago Mercantile Exchange.”

In his view, both companies offer a low-cost solution using technologies that they are then able to license to competitors. Thus, the business models of the managed care company and the exchange come to resemble each other. “Being global generalists we’re looking across many industries, and what we often find is that a company with a significant competitive advantage in one industry actually looks more like a company in a different industry,” according to Cory.

The management of Gartmore US Opportunities Fund transitioned to Marsico on the 29th June 2007. Marsico, which is based in Denver, Colorado, specialises primarily in US large- and multi-cap equity mandates.