Health-care and pharmaceutical stocks are facing a great amount of uncertainty in the wake of health-care reform. Rosanne Ott, co-portfolio manager at Alger Health Sciences Fund, offered CNBC her investment advice and favorite stocks.
Investors should look for stocks that are growing their revenues faster than Wall Street expected; that are introducing a new product cycle; and are either a monopoly or oligopoly that will grow its units faster than its competitors, said Ott.
"I think everything's going to be affected in some way, shape or form, but it's a matter of what's going to have the least amount of effect" from reform efforts, Ott said.
NuVasive — a spine technology company. It has created a product that allows surgeons to perform more procedures in one day.
Life Technologies — a biotechnology tools company she said will benefit from stimulus spending in the next 12 to 18 months.
Intuitive Surgical — a monopoly in surgical robotics, Ott said.
"It's growing its revenues faster than people anticipate even in the environment of health-care reform, where hospitals have very tight capital equipment budgets."
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Disclosure information was not available for Ott or her company.