Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Tim Hartch
Tim Hartch
BBH Core Select

Pick: Novartis (NVS)

Slow and focused could be Tim Hartch's mantra. The fund he co-manages, BBH Core Select (BBTEX), typically holds only 20 to 30 stocks and hangs on to them for an average of three to five years. That approach has fueled 6.8% annualized returns since Hartch began in 2005 (vs. 3.1% for the S&P). Hartch combs the world for stout giants whose shares have slipped to 75% or less of what Hartch thinks they're worth. Then he pounces. Today he sees opportunity in Novartis, a top holding of his fund. The shares have been mostly treading water for years; more recently, fears of government cutbacks in reimbursements have bumped the stock 20% off its 52-week high. But with pharma offerings that treat chronic diseases, Novartis faces less risk of reimbursement declines than competitors, Hartch thinks. It also has a highly regarded pipeline of potential blockbuster drugs, and its eye-care business, Alcon, is booming. At a current $52, the shares are underpriced, in Hartch's view -- he thinks their real value is $75.


By Katie Benner, Ryan Derousseau, Amy Feldman, and Mina Kimes @FortuneMagazine - Last updated June 20 2012: 10:46 AM ET
Join the Conversation