Top hedge fund manager David Neuhauser says the world is in the midst of a “baby boomer renaissance” and investors should bet heavily on certain sectors that fit that theme. Neuhauser, founder and chief investment officer of Livermore Partners, said the world is aging rapidly, and industries such as travel, health care and biotechnology will benefit from this. Investors should focus on areas “tailored for affluent baby boomers” who want to spend money on lifestyle options and improve health and well-being, he said, adding that examples include diet pills and travel and cruises. “They are the ones who have the most assets (homes, stocks, bonds, etc.) and have lower fixed-rate mortgages,” Neuhauser said. “A lot of these people also have cash and they have money in money market accounts, so they also have a good source of income that helps maintain their lifestyle,” he told CNBC’s “Asia Roadmap” last week. Big Pharma “has a lot of cash as these baby boomers age,” Neuhauser said. He said that if reliable preliminary results are produced, big pharmaceutical companies may acquire biotech companies now rather than wait for late-stage trials to be completed. That could lead to more acquisitions, he said. “I think the world is in the midst of a baby boomer renaissance right now, and there are stocks that are seeing huge moves,” he told CNBC Pro. He added that the stocks “are not big tech stocks, which suggests a correlation with the wealth (effect) Other areas are helping extend gains.” Here are the stocks he named along with their buy ratings and average upside from analysts covering them, according to FactSet.
