While biotech and pharmaceutical stocks have been struggling for the year, Jim Cramer discovered a less-sexy part of the health care group that is on fire. Portfolio managers have flocked to medical device companies in an effort to mirror the sector breakdown of the S&P 500.
"Money managers are pouring cash into the medical device segment precisely because pharma and biotech have, at least temporarily, gone out of style on the Wall Street fashion show," the "Mad Money" host said.
The group came under fire since last September when Hillary Clinton focused her efforts on price gouging, around the same time that Turing Pharmaceuticals jacked up prices on its generic drugs, and turmoil at Valeant was in the public eye.
Often money managers try to mirror the sector composition of the S&P 500. Currently, the S&P is comprised of 15 percent health care, which means the money managers are desperate to have health-care exposure.
"They need to invest in health care, but they want to put that money in safer health care stocks that aren't in the crosshairs of the federal government. That is one big reason they have been buying the medical device stocks hand over fist," Cramer said.