Perspectives Blog

Death, taxes and Medicaid expansion

Harlan Sonderling, CFA, Senior Healthcare Analyst | September 8, 2014

Almost as certain as death and taxes is Medicaid expansion under ACA and the move by states toward Medicaid managed care and away from traditional fee-for-service. Medicaid managed care enrollment will expand as states transition beneficiaries from fee-for-service coverage to managed care and the “opt-in” states broaden eligibility. Medicaid coverage expansion will be a source of accelerating revenue and earnings within the managed care industr…

Profit margin watch

Tom West, Director of Equity Research | October 13, 2014

…sruption in the form of legislation around pricing and offerings. Healthcare has absorbed much of the Affordable Care Act pretty well. Managed care companies have held onto profitability, and some of the providers are benefiting from the growth in utilization. The financial sector was hit with a variety of restrictions—from limits on overdraft fees on small checking accounts to the amount of capital that must be held by the largest capital market…

European equities – Should investors care about periphery vs. core anymore?

Dan Ison, Portfolio Manager | January 13, 2014

The more dramatic the economic reforms, the better the stock market performance in the eurozone We expect nominal growth to be the key driver of an improving earnings picture in Europe European equities should show further good returns to investors in 2014 As we enter 2014 there are the usual questions, conversations and strategy pieces extolling the virtues of different regions and asset classes. 2013 saw a phoenix-like resurgence in interest…

The case for active bond management

Carl Pappo, Head of Core Fixed Income | August 25, 2014

…d tax implications among other key factors. A critical decision investors must make is choosing between actively managed and passively managed funds. There is currently $2.9 trillion invested in taxable bond mutual funds, including ETFs, of which $2.3 trillion is actively managed (Morningstar, June 2014). In this article, we will evaluate these two styles and build a case for the benefits of active management over passive/index strategies. The ob…

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | November 3, 2014

…ecame effective as a result of the American Taxpayer Relief Act of 2012 and taxes associated with the Affordable Care Act (ACA) of 2010. Among them were three distinct income thresholds that investors could cross over, each with unique tax implications. The first threshold triggers the two surtaxes related to the Affordable Care Act of 2010. Crossing the second threshold begins a phase-out of personal exemptions and itemized deductions for federa…

The case for active muni management

Kimberly Campbell, Senior Portfolio Manager | April 21, 2014

Muni bonds represent an attractive investment opportunity Active management is a value add in these volatile markets Professional money managers can help investors navigate an ever-changing environment Where does one invest in a world of uncertainty? Rising taxes, volatile markets, low yields, economic stagnation, geopolitical unrest. We live in a world of great uncertainty — yet our investment goals remain the same: a comfortable retirement,…

M&A in healthcare – Out with the old, in with the new?

Harlan Sonderling, CFA, Senior Healthcare Analyst | March 31, 2014

…d earnings growth has been prized. Similar acquisition sprees are ongoing in other healthcare subsectors such as managed care and pharmaceutical distribution, though none with the tax inversion strategies prominent in specialty and generic pharmaceuticals. Nothing above is boasting of our recent investment success in deal-driven specialty and generic pharmaceuticals (or other healthcare subsector) investments, nor to bemoan our lost opportunities…