Sophie Smith, a portfolio manager at Melbourne-based SG Hiscock, which manages $3.3 billion in assets, discussed recent performance divergences between the firm’s medical technology and opportunities funds. Smith attributed the differences to sector dynamics, noting that healthcare has faced headwinds while the opportunities fund benefited from shifts favouring capital-intensive businesses. SG Hiscock is an investment management firm based in Melbourne, Australia, providing various investment solutions to institutional and retail clients. The company oversees a diverse portfolio, focusing on delivering sustainable, long-term investment outcomes.
Smith highlighted potential opportunities arising from recent sell-offs in healthcare stocks like CSL, Pro Medicus, and ResMed. She pointed to Singular Health, an Australian software company, as a stock that is relatively unknown, with the company targeting inefficiencies in the US medical imaging system. Its FDA-cleared 3DICOM platform aims to streamline scan transfers across fragmented healthcare networks, addressing the issue of duplicate imaging. Smith noted the company’s recent enterprise deployment and potential for broader adoption.
Another stock Smith identified as undervalued is Lumos Diagnostics, particularly pending the FDA CLIA waiver decision in the US for its FebriDx test. This waiver would unlock access to a substantial frontline healthcare market, enabling broader reimbursement and adoption. Lumos has already secured a significant US distribution agreement contingent on the CLIA waiver outcome. Smith emphasised the importance of disciplined investing, advocating for starting small and scaling as evidence builds, particularly in healthcare and small caps.
Smith recommends the ‘Unhedged’ podcast from the Financial Times for those interested in market-moving events and global finance. Her favourite local spot is Clover, a wine bar in Richmond.
