Hedge funds short healthcare providers as subsidies debate intensifies

By Nell Mackenzie

LONDON, Dec 22 (Reuters) - Hedge funds past week sold much U.S. healthcare stocks than they bought for the ​first clip successful 14 weeks, Goldman Sachs said successful a enactment ‌on Friday, arsenic expiring subsidies permission lawmakers scrambling to curb costs.

About 24 cardinal Americans ‌buy wellness security done the Affordable Care Act, known arsenic Obamacare aft Democratic President Barack Obama. Subsidies boosted during the COVID pandemic expire connected December 31 unless Congress acts, leaving users facing sharply higher costs.

U.S. President Donald ⁠Trump said connected Friday ‌he wanted to conscionable wellness insurers successful coming weeks to sermon ways to little prices.

Hedge funds finished the ‍week nett sellers of healthcare providers and services, pharmaceutical and biotech firms, Goldman said successful a lawsuit enactment seen by Reuters connected Monday. Life sciences and healthcare ​technology were the lone sub-sectors with nett purchases.

Short bets outweighed agelong ‌positions by much than 8 to one, the slope said. Short positions expect terms declines, portion agelong bets expect gains.

Healthcare holdings stay comparatively precocious versus the past twelvemonth and five-year averages, Goldman said.

Rising healthcare costs and different user prices person fueled nationalist discontent and could loom ample ⁠at the 2026 midterm elections.

House Republicans this ​week passed a Trump-backed measure to chopped ​premiums for immoderate portion reducing subsidies and raising costs for others from January 2027, 2 months aft voters spell ‍to the polls.

In November, ⁠telehealth steadfast Him & Hers and technological instrumentality shaper Bruker were the apical abbreviated picks among mid-sized U.S. stocks, according to Hazeltree, ⁠which tracks 700 plus managers and 15,000 stocks globally.

Bruker and Him & Hers did not ‌immediately respond to requests for comment.

(Reporting by Nell Mackenzie. Editing ‌by Amanda Cooper and Mark Potter)