The world is experiencing a “boom renaissance” and investors should bet big on certain sectors playing into the theme, says David Neuhauser, a senior hedge fund manager. The world is aging rapidly, and sectors such as tourism, healthcare and biotechnology will benefit from this, according to Neuhauser, founder and chief investment officer of Livermore Partners. Investors should focus on areas “tailored to affluent boomers” who want to spend on their lifestyles and improve their health and well-being, he said, adding that examples include weight-loss drugs, travel and cruises. “They are the only demographic group that owns the most assets (homes, stocks, bonds, etc.) with low, fixed-rate mortgages,” Neuhauser said. “A lot of these individuals also have cash, they have money in money market accounts, so they have a good income stream as well and that helps support their lifestyle,” he told CNBC's “Street Signs Asia” last week. Big Pharma in particular has “a lot of money because of aging baby boomers,” Neuhauser said. He said big pharmaceutical companies may now acquire biotech companies if strong initial results are produced, rather than waiting for late-stage trials to be completed. This could lead to more acquisitions, he said. “I think the world is going through a boom right now, and there are some stocks that are seeing great moves,” he told CNBC Pro. He added that stocks “are not huge technology, which shows you that other areas associated with wealth (influence) are helping to expand gains.” Here are the stocks he mentioned and the buy ratings and average upside given by the analysts covering them, according to FactSet.
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Hedge fund manager says it's a 'booming renaissance'
