Passion. Integrity. Results. Food for Food for Bulls: Fear - - PowerPoint PPT Presentation

• Passion. Integrity. Results.

October 2019

Food for Food for Bulls: Fear… Bulls: Fear… And Hope! And Hope!

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• Passion. Integrity. Results.

350 300 250 200 150 100 50

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Jan’19 Feb’19 Mar’19 Apr’19 May’19 Jun’19 Jul’19 Aug’19 Sep’19 Oct’19 Nov’19 Source: BofAML Global Investment Strategy, EPFR Global

Cumul Cumulati tive F ve Fund Flows 2 nd Flows 2019

Source: BofA Merrill Lynch Global Investment Strategy

Confidence is Low (Good News!) Confidence is Low (Good News!)

BofAML BofAML B&B Ind B&B Indicator (scale 0 cator (scale 0 to 1 to 10)

• $208bn

State Str State Street Investor Confi Investor Confidenc ence Index,1 Index,1999 – 99 – 2019

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 140 130 120 110 100 90 70

Mid Price 80.1 High on 03/31/00 139.3 Average 108.1 Los on 03/29/19 71.2

80.1 10 9 8 7 6 5 3 2 1 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 ‘20 Extreme Bear Extreme Bull Actual Backtest $339bn

• $208bn

Cu Cumu mulative fu fund flo flows ($bn) s ($bn) Global Equities Global Govt & Corp Bonds

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• Passion. Integrity. Results.

Source: Bloomberg L.P.

Risk A Risk Aversion Evident in V ersion Evident in Valuation luation

Earning Earnings Yield S&P 500 Yield S&P 500 and 1 and 10-Year T ear Treasur easury Yield, 1 Yield, 1989-2

• 2019

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00

Dec-89 Aug-90 Apr-91 Dec-91 Aug-92 Apr-93 Dec-93 Aug-94 Apr-95 Dec-95 Aug-96 Apr-97 Dec-97 Aug-98 Ap-99 Dec-99 Aug-00 Apr-01 Dec-01 Aug-02 Apr-03 Dec-03 Aug-04 Apr-05 Dec-05 Aug-06 Apr-07 Dec-07 Aug-08 Apr-09 Dec-09 Aug-10 Apr-11 Dec-11 Aug-12 Apr-12 Dec-13 Aug-14 Apr-15 Dec-15 Aug-16 Apr-17 Dec-17 Aug-18 Apr-19

Amount Equities to Earn$1 Amount Bonds to Earn $1

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• Passion. Integrity. Results.

10000 8000 6000 4000 2000 1000 800 600 400 200 100 80 60 40 20 10 8.00 6.00 4.00 3006.79 1930-1939 1940-1949 1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2019 2020-2029

Source: BofA Merrill Lynch Global Research, Bloomberg

Structural Bull Market Structural Bull Market

Gener Generational lows: tional lows: 1942 942, 1 1974 & & 2 2009

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• Passion. Integrity. Results.

Angeles Angeles Private Capital Themes Private Capital Themes

FutuRx FutuRx LogicBio LogicBio Therapeutics Therapeutics Emendo Emendo Biot Biotherap herapeutics ics Mitoconix Mitoconix Tisbu Tisbury Pharmaceuticals ry Pharmaceuticals Alize Pharma Alize Pharma Impact Bio Impact Bio Azura Azura Ophthalmics phthalmics 89Bio 89Bio Galecto Galecto Biotec Biotech SteadyMed SteadyMed Therapeutics herapeutics FusMobile FusMobile Mobile ODT Mobile ODT MD Clone MD Clone Novellu NovellusDX Health Catalys Health Catalyst Kyruus Kyruus PatientPing PatientPing Vera Whole Vera Whole Health Health Outcome Health Outcome Health Scientist Scientist Aktana Aktana PatientPop PatientPop Potenus Potenus LetsGetChecked LetsGetChecked Groups Groups Bost Boston Health Economics Health Economics Aspen Dental Aspen Dental MD VIP MD VIP Catalent Catalent Cerevel Cerevel U.S. Renal U.S. Renal Care Care VetCor VetCor Professiona Professional Practices Practices HHAeXchan ange ge Shearwater Health Shearwater Health

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• Passion. Integrity. Results.

Or Orders of Magnitude Advances ders of Magnitude Advances

$100,000,000 $10,000,000 $,000,000 $100,000 $10,000 $1,000 $100 $10 $1 Sept-01 Jun-02 Mar-03 Dec-03 Sep-04 Jun-05 Mar-06 Dec-06 Sep-07 Jun-08 Mar-09 Dec-09 Sep-10 Jun-11 Mar-12 Dec-12 Sep-13 Jun-14 Mar-15 Moore’s Law Transition to “next-gen sequencing Pric Price of e of sequen sequencing one

• ne huma

human genome genome Cost per Genome Cost per Genome

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• Passion. Integrity. Results.

Neuro Liver Blood Heart Muscular Eye Infections Cancer Lung $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Peak Peak sal sales oppor s opportunity ($bn) y ($bn)

Lar Large Market Opportunity e Market Opportunity

$5 trillion TAM in Genome medicine VC investments in Genomics have tripled in past few years

Curren Currently addr addressed di essed diseases seases Total: tal: $1, $1,330bn. bn. New addr New addressed di essed diseases seases Total: tal: $3, $3,510bn. bn.

$1,1 $1,100 $185 $185 $536 $536 $32 $32 $61 $61 $517 $517 $1,0 $1,070 $60 $60 $5 $5 $408 $408 $182 $182 $71 $71 $49 $49 $477 $477 $45 $45 $96 $96 Source: CB Insights, Goldman Sachs Global Investment Research

2010 2011 2012 2013 2014 2015 2016 2017 2018 4000 3500 3000 2500 2000 1500 1000 500 120 100 80 60 40 20 VC Investments # of deals US ($mm) US ($mm)

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• Passion. Integrity. Results.

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1600 1400 1200 1000 800 600 400 200

Health Car Health Care Outpaces Outpaces

Source: Bloomberg L.P. S&P 500 Health Care Sector GICS Level 1 Index S&P 500 Index

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• Passion. Integrity. Results.

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