Justin Lake moved to J.P. Morgan from UBS in 2012 and fell from the ranking. He rejoins the team in grand style, earning his first top finish here and in Health Care Facilities. Clients readily explain why. “Justin excels at backing up his arguments with solid analysis. His proprietary work on Medicare Advantage has made it easier to invest in the space,” offers one. Into 2014, Lake foresees a continuously strong showing for the sector, which trumped the S&P 500 by 12.3 percentage points year to date through August, rising 26.8 percent. Key factors to watch include “the trajectory of the health care cost trend as well as implementation of health care reform,” he notes. Since May, Lake has advised buying Louisville, Kentucky’s Humana, some two thirds of whose earnings derive from MA plans. The stock’s price/earnings multiple could bolt from its current in-line position to a 15 to 20 percent premium, he contends, given the above-average end-market growth of MA. Humana surged 22.4 percent since his May upgrade from neutral, at $75.25, to close August at $92.08. Lake, 42, earned an MBA at New York University’s Stern School of Business, then joined UBS, where he covered health care sectors. — Leslie Kramer Also appearing in Health Care Facilities |
