"Performance for these companies continues to be supported by competitive advantages, strong balance sheets, robust free cash generation, and consistently high returns on capital," Schoenstein said.
Strategically, he favors businesses with exposure to positive secular trends such as aging demographics.
"We are focused on healthcare companies that supply innovation-focused products and can benefit from volume increases both domestically and throughout the world," Schoenstein said.
A name he likes now is UnitedHealth Group. "UnitedHealth has posted consistently high returns on equity and has used its robust free cash flow to continue to grow its business, including strategic acquisitions, as well as to return over $18.1 billion to shareholders via dividends and share buybacks over the last five years," Schoenstein said.
UnitedHealth is down during trading, but is up 17 percent over the past year.