Sohn Hearts & Minds Investment Leaders Conference – Chris Kourtis

Chris Kourtis showcases his table thumping best stock pick at this year’s Sohn Hearts & Minds Investment Leaders Conference at the Opera House

Chris Kourtis, Hall of Famer, Director and Portfolio Manager at Ellerston Capital, focused on the continued need for sleep apnea products.

Obesity is seen as a key factor in obstructive sleep apnea and Chris discusses why he is bullish on ResMed Inc (ASX: RMD, RMD_US) post its recent share price plunge. As a very recent addition to the portfolio, his contention is that RMD has been seriously oversold due to market concerns around the disruption caused to its business model by weight-loss drugs – reducing the need for sleep apnea remedies.

However, Chris highlights that the high cost to the user of these drugs was prohibitive, that adherence and medical insurance coverage was an issue, and that the resulting weigh loss is unsustainable in the long term, not to mention the adverse side effects.

He likens the rise of weight loss drug stock valuations to the hype surrounding the pharmaceutical company Moderna Inc (MRNA_US) during the global pandemic. He believes there is room in the market for both treatments.

“Yes. Weight loss drugs are going to take-off. But ResMed’s runaway given that take-up is pretty long. Their revenue growth which has been about 9-11% historically, may come down to 7%, but it’s still a great runaway”.

Watch the full presentation here.