A Growing Health Care Opportunity
The number of overweight people worldwide is a growing trend, having tripled since 1975 to nearly 2 billion people, 13% of whom are considered obese. There may be a benefit to investing in health care companies that are developing products, procedures, or services to treat the complications associated with people who are overweight.​

Percentage of Global Population That is Overweight Graph ​

  • The percentage of overweight people in the world has been historically increasing at an accelerating rate. Over the past decade, the overweight population increased by about half a percentage point annually, faster than it grew in previous decades, and emblematic of a continuing long-term trend. It is estimated that in the United States a staggering 72% of adults are considered overweight and 40% are considered obese.1

  • A 2018 National Institute of Health study concluded that spending on drug prescriptions and inpatient care is twice as high for overweight people as it is for those of healthy weight.2 This is likely because overweight people are more disposed to cardiovascular issues (e.g., heart disease and peripheral arterial disease), diabetes and some cancers (e.g., colon and breast).
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  • The growing trend of being overweight may prove to be a tailwind for companies that address some of the outcomes of the condition such as companies that produce life-saving medical devices such as heart pumps or advanced minimally invasive surgical devices. Pharmaceutical manufacturers treating diabetes and cardiovascular diseases may benefit too.

1CDC; overweight defined as BMI equal to or greater than 25 and obesity is defined as BMI equal to or greater than 30.​

The views expressed are the views of Fred Alger Management, Inc. as of April 2019. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

​This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

​Risk Disclosures: Investing in the stock market involves risks, and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in healthcare and technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies.​

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