Investors look beyond drug makers as rush for Covid treatment hots up

A record 48 per cent of fund managers are overweight healthcare stocks, a Bank of America survey has shown

Investors are diversifying their bets in the healthcare sector, as the rush to develop treatments for Covid-19 has driven up prices for some pharmaceutical stocks.

A record 48 per cent of fund managers are overweight healthcare stocks, a Bank of America (BofA) survey has shown, and the S&P 500 healthcare sector is up nearly 34 per cent since its March low, according to a Reuters report.

Hopes for a treatment have also sparked outsize rallies in the shares of companies like Moderna and Inovio Pharmaceutcials, up 253 per cent and 327 per cent since the start of the year, respectively,