Given the industry’s strong fundamentals and outlook for continued growth, Avista believes the healthcare sector continues to be an attractive area for investment. Avista focuses primarily on mid-sized companies in the pharmaceutical, medical device and related service subsectors, but also evaluates other healthcare subsectors on an opportunistic basis. Avista targets companies that have scalable, protected products and services in non-cyclical sectors, with an emphasis on opportunities with limited government reimbursement risk. Avista believes that companies in Avista’s targeted sectors are well positioned to benefit from the factors that are driving the growth in healthcare spending and from other healthcare trends. Across the healthcare sector, Avista targets businesses that have strong management teams, stable cash flows and robust growth prospects.