Healthcare and biotechnology are often areas of interest for investors, but getting diversified exposure to the companies at the forefront of innovation with line-of-sight to key catalysts requires a tailored, thoughtful approach in a sector that is well known to be challenging for stock pickers. This piece introduces the S-Network Healthcare Innovation Index (PHIX) and how its screening process has resulted in outperformance by focusing on smaller companies with takeover potential and clear catalysts.