Market conditions have proved challenging for small and mid-caps, and the healthcare sector particularly has oversold on recessionary concerns, explains Deane Donnigan, manager of the Polar Capital Healthcare Discovery Fund. Despite this, there are a number of reasons for investors to be confident believes Deane, including the amount of M&A activity occurring within small and mid-cap healthcare companies, as stocks sit on low multiples with attractive valuations.

In light of this, Deane also explains how the Fund is positioned, why the November mid-term elections in the US are unlikely to provide much impetus for healthcare stocks, and why now is an interesting time for small and mid-cap investors to revisit the healthcare sector.