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Pacific Asset Management: “AI can be the lifesaver for people suffering from the five big diseases of ageing”

Recent discussions about the opportunities of artificial intelligence (AI) in modern medicine – like the approval of clinical tests on humans for brain implants to treat paralysis, blindness and Alzheimer’s for a neurotechnology firm in the US (I have just added that from a recent Economist article but if you think it doesn’t fit, please delete it) – have demonstrated how more and more healthcare businesses are using AI, machine learning and large language models in every day procedures. “AI and Machine Larning is already leveraged by some companies, e.g. for drug discovery, imaging and Marketing”, says Dani Saurymper, portfolio manager at independent London-based investment boutique Pacific Asset Management (PAM).

And the impact of AI is only growing, according to Saurymper, who manages the Pacific Longevity and Social Change Fund and who recently went on his annual European Healthcare field trip where he spoke to senior leadership teams of 19 of the world’s biggest healthcare businesses.

People over 65 spend three times more days in hospital

As “longevity ist the biggest political, economic and social transformation of the century”, as the portfolio manager believes, companies that can serve this trend will benefit. Saurymper points to the five big diseases of ageing – diabetes, cancer, heart attack/stroke, dementia and arthritis – and the impact they can have on older people’s lifes: “People over 65 spend 3 times more days in hospital, people over 75 even 4 times more days.”

For those, AI can come as a lifesaver, Saurymper explains: “For example, AI is being used to develop treatment planning software that can help doctors deliver more precise care, selecting the best therapies for patients with cancer or monitoring patients remotely for early warnings of health problems.”

Top three contributors in Q2 are from medical sector

The growing interest of healthcare businesses into AI and the wider field of using it in a range of activities was partly mirrored in the performance of the Pacific Longevity and Social Change Fund in the last quarter. The top three absolute contributors were all firms from the medical industry: ConMed, a producer of surgical and medical instruments for arthroscopic procedures; Exact Sciences, a diagnostic company for detecting cancer in early stages; and ICON, a clinical research organisation for the pharmaceutical industry.

All these developments and his recent talks with the world’s biggest healthcare businesses reassured Saurymper: “We believe many companies are set to transform and revolutionize the healthcare industry through their deployment of AI.”

Pacific Longevity and Social Change Fund by Pacific AM is an Article 8, actively managed global long-only equity fund. The fund, which invests in trends evolving around the topic “longer life and healthy living” and the connected Longevity economy was launched in October 2021 and has a fund volume of USD xx million (as of 30/06/2023).

About Pacific Asset Management

Pacific Asset Management is an independent asset manager based in London, serving mainly institutional clients. PAM currently offers five active strategies that are not constrained by a benchmark or a predefined “house view”. All strategies, which are also authorised as UCITS funds in Germany and Austria, are owner-run and characterised by three investment features: They have a high conviction, are craft-based and outcome-orientated. PAM was founded in 2017 and currently manages assets of GBP 3.9 billion (approx. EUR 4.5 billion) as of 30/06/2023. For more information, please visit the Pacific AM website: https://www.pacificam.co.uk/

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  • Pacific AM – Dani Saurymper: Pacific Asset Management