Malcolm E. Polley, CFA, is President and Chief Investment Officer at Stewart Capital Advisors, LLC. His mid-cap portfolio has plenty of sound investments but Mr. Polley has some special interest in health care related issues: “…a company like Huron Consulting (NASDAQ:HURN), which uses data to help the education industry and health care industries improve their profitability in an environment where earnings growth is difficult to come by. The ability of a hospital or a school or educational institution to turn to an organization like Huron to help them figure out how they can accomplish more with less or how they can improve their profitability. We really think in this type of environment, organizations like Huron Consulting should be winners, as they really have a value add to provide.”
Consolidation within the sector should prove to be an ongoing theme, however Mr. Polley cautions against getting too ambitious about predicting the outcome from potential partnerships: “…you’ve seen more and more deals get scuttled because of antitrust considerations. For instance, the Walgreens (NASDAQ:WBA)/Rite Aid (NYSE:RAD) deal — the original deal was just scuttled, and now Walgreens is basically going to buy a bunch of Rite Aid stores. ”
For more of this in depth interview with Malcolm E. Polley, read the rest here.