Geneva and London – Lombard Odier, a Geneva-based private bank, and Polar Capital, a UK asset manager, launched the PrivilEdge – Polar Capital Global Healthcare Fund on March 19, 2026, according to a statement released by Lombard Odier. The fund, domiciled in Luxembourg and denominated in US dollars, aims to capitalize on growth within the global healthcare sector.
The fund’s strategy centers on a dynamic allocation between established large-cap healthcare companies and innovative biotechnology firms, seeking to balance stability with growth potential. The portfolio will comprise 75 to 90 holdings, targeting outperformance against the MSCI World Healthcare Index while maintaining lower volatility, as reported by Portfolio Adviser.
Gareth Powell, who has led Polar Capital’s specialized healthcare team since its inception in 2007, will manage the fund. His eight-person team, including James Douglas, David Pinniger, Deane Donnigan, and Brett Pollard, collectively manages approximately $4 billion in assets, many with backgrounds in research, clinical practice, or science.
The launch expands Lombard Odier’s PrivilEdge open architecture fund platform, designed to provide clients with curated access to top external fund managers. “PrivilEdge was created to offer our clients curated access to the best external fund ideas on the market,” explained Maxime Perrin, head of Open Architecture at Lombard Odier.
Powell emphasized the structural tailwinds supporting the healthcare sector, stating that it “remains one of the most compelling areas of structural growth globally – driven by innovation, demographic trends, and a continuing demand for better treatment outcomes.”
The move into healthcare comes as the sector experiences a return to stability following a period of turbulence. The aging global population, increasing demand for medical care, and the pursuit of more efficient healthcare systems are all contributing to sustained growth. Technologies like artificial intelligence are accelerating research and development, enabling faster identification of drug candidates and more targeted therapies.
The healthcare sector experienced a surge during the COVID-19 pandemic, particularly in biotechnology, and pharmaceuticals. However, rising interest rates and decreased investment led to significant declines in the biotech segment following the pandemic’s peak. A noticeable recovery began in the second half of 2025, supported by easing political risks, stable fundamentals, and renewed investor risk appetite.
Valuations in the healthcare sector are returning to long-term averages, with a valuation discount compared to global equities. Analysts anticipate an average earnings growth of around 15% per year for biopharma and life science tools between 2024 and 2027 – more than double the long-term trend. Mergers and acquisitions are also expected to increase, driven by patent expirations at major pharmaceutical companies seeking to acquire innovation from biotech firms. Goldman Sachs projected a 25% increase in healthcare M&A activity in 2025, citing recent deals such as Johnson & Johnson’s $15 billion acquisition of Intra-Cellular Therapies and Stryker’s $5 billion purchase of Inari Medical.
The healthcare sector is considered attractive to portfolio strategists due to its defensive and growth characteristics. Demand for medical services is relatively resilient during economic downturns, and healthcare stocks historically exhibit a lower correlation to the overall market, offering portfolio stabilization.
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