Obesity-Drug Mania Propels Top Stock Fund to Beat 94% of Peers

• A$1.3b global equity fund has gained 22% year to date
• Fund’s top holdings include drugmakers Novo Nordisk, Eli Lilly

 

A top-performing equity fund with years-long investments in the insulin makers behind the recent weight-loss stock frenzy is betting the rally has further to run.

Novo Nordisk A/S and Eli Lilly & Co. are among top holdings in the A$1.3 billion ($839 million) Capital Group New Perspective Fund, which is beating 94% of peers this year, according to data compiled by Bloomberg. While the fund first invested in the two companies long before this year’s fervor for obesity treatments, it sees a longer-term opportunity in the development of such drugs.

https://www.bloomberg.com/news/articles/2023-09-20/obesity-drug-mania-for-propels-top-stock-fund-to-beat-94-of-peers