Stick With Airlines, Healthcare and Apple Says Frost Fund Manager

Obamacare has boosted the prices of healthcare stocks in the past five years and investors should expect additional healthy returns.

Obamacare has boosted the prices of healthcare stocks in the past five years and investors should expect additional healthy returns now that the Supreme Court has rebuffed the latest challenge to the law, according to Tom Stringfellow, portfolio manager for the Frost Growth Equity Fund. 'I think healthcare benefitted by the rulings of Obamacare a few years back. Probably surprised a lot of investors but, candidly, it opened up new opportunities for companies to deliver products to consumers that had not taken advantage of healthcare services before,' said Stringfellow. The Frost Growth Equity Fund is up 6.4% year-to-date. Stringfellow added that valuations on biotech stocks – one of the big drivers of the healthcare sector’s strong performance – may be high, but new products in areas like gene splicing and DNA analysis will justify those levels over the next year. He said he is also bullish on transportation stocks, pointing to the comeback of the consumer as evidence that airline stocks like Southwest and United will fly higher.