Tracking Larry Robbins' Glenview Capital Management Portfolio - Q4 2015 Update

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Includes: A, AAPL, ABBV, ABG, AET, AGN, AIG, AMAT, AN, ANTM, APOL, ARMK, BK, BKD, BKNG, C, CAR, CBS, CDNS, CFG, CHTR, CI, CMCSA, CP, CSRA, CYH, DD, DG, DXC, EBAY, EHC, ENDP, FLEX, FMC, FNF, GLBL, GM, GOOG, GOOGL, GPI, GPS, HCA, HTZ, HUM, JAH, KND, KSU, LAD, LBTYA, LBTYK, LH, LNG, MAN, MCK, MHK, MON, MTOR, MTW, MYL, NOV, PHH, PNR, PVH, RAD, RLGY, SIRI, STNG, SUNEQ, TER, TERP, TEVA, THC, TMO, TMUS, TRP, UHS, VER, VOYA, WOOF, WRK
by: John Vincent
Summary

Glenview Capital Management’s 13F portfolio decreased from $20.15B to $17.76B this quarter. The number of positions decreased from 78 to 55.

Larry Robbins substantially increased HCA Holdings, Humana, and Cigna while dropping Endo International plc.

The top-three positions are Humana, Monsanto, and Cigna and they add up to ~22% of the portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Larry Robbins' US stock portfolio on a quarterly basis. It is based on Robbins' regulatory 13F Form filed on 02/16/2016. Please visit our Tracking Larry Robbin's Glenview Capital Management Portfolio article for an idea on his investment philosophy and our previous update for the fund's moves during Q3 2015.

This quarter, Robbins' US long portfolio decreased ~11.87% from $20.15B to $17.76B. The number of holdings decreased from 78 to 55. The top five positions are Humana, Monsanto, Cigna, HCA Holdings, and Thermo Fisher Scientific. Together, they are at 32.05% of the US long assets.

Stake Disposals:

Allergan plc (NYSE:AGN) previously Actavis: The medium-sized 2.06% AGN stake as of last quarter was eliminated this quarter at prices between $253 and $323. It was established in Q3 2014 at prices between $206 and $246. Last quarter saw a ~23% reduction at prices between $252 and $340. The stock currently trades at $285.

Dollar General (NYSE:DG): DG was a 0.86% of the US long portfolio stake. The bulk of it was purchased in Q4 2013 and the following quarter at prices between $55 and $63. Last three quarters had seen a two-thirds reduction at prices between $65.87 and $81.18. The elimination this quarter was at prices between $60 and $73. The stock currently trades at $72.77.

Endo International (NASDAQ:ENDP): ENDP was built-up over the six quarters thru Q2 2015 at prices between $61 and $95. Last quarter saw a ~21% reduction at prices between $60.57 and $87.63. The remaining position was sold this quarter at prices between $51 and $71. The stock is now at $50.44.

Agilent Technologies (NYSE:A): Agilent was a small 0.78% of the 13F portfolio position established last quarter at prices between $33.37 and $41 and disposed of this quarter at prices between $33.74 and $42.36. The stock is currently at $38.03.

Teradyne Inc. (NYSE:TER): The 1.15% TER stake was established in Q3 & Q4 2014 at prices between $16.53 and $20.59. The elimination this quarter happened at prices between $17.80 and $21.48. The stock currently trades at $18.88.

Apollo Education Group (NASDAQ:APOL), Apple Inc. (NASDAQ:AAPL), Canadian Pacific Railway (NYSE:CP), Cheniere Energy (NYSEMKT:LNG), Citigroup Inc. (NYSE:C), Comcast Corp (NASDAQ:CMCSA), eBay Inc. (NASDAQ:EBAY), Gap Inc. (NYSE:GPS), General Motors (NYSE:GM), Kansas City Southern (NYSE:KSU), Mohawk Industries (NYSE:MHK), Mylan N V (NASDAQ:MYL), National Oilwell-Varco (NYSE:NOV), Rite Aid Corporation (NYSE:RAD), Scorpio Tankers Inc. (NYSE:STNG), Sirius XM (NASDAQ:SIRI), Sunedison Inc. (NYSE:SUNE), TerraForm Power (NASDAQ:TERP), T-Mobile US (NASDAQ:TMUS), and Voya Financial (NYSE:VOYA): These are very small (less than ~0.5% of the portfolio each) positions eliminated this quarter. AAPL, CP, and SIRI positions were from last quarter while the others were established earlier.

New Stakes:

Computer Sciences Corp. (NYSE:CSC) and Time Warner Cable (NYSE:TWC): These are the two new positions this quarter. CSC is a 1.27% stake while TWC is a 0.90% position.

Note 1: In May 2015, Charter Communications (NASDAQ:CHTR) agreed to buy TWC in a cash-and-stock deal valued at $195 per share ($100 cash).

Note 2: CSC spun off CSRA Inc. (NYSE:CSRA) in November 2015 and there was a $10.50 special dividend associated with the spinoff as well.

Stake Decreases:

AbbVie Inc. (NYSE:ABBV): ABBV was a very small 0.65% of the US long portfolio position established in Q1 2015. Q2 2015 saw a whopping 630% increase at prices between $57 and $71. The stake is now fairly large at 4.52% position. Last two quarters have seen a combined ~25% reduction at prices between $48 and $71. The stock currently trades at $55.28.

Applied Materials (NASDAQ:AMAT): The 0.87% AMAT position was established in Q1 2014 and increased by ~38% the following quarter at a cost-basis in the high-teens. The stake was sold down by a combined ~70% in the last two quarters of 2014 in the low-20s price-range. Q1 2015 saw a huge ~200% increase at prices between $22.40 and $25.63 and that was followed by a ~58% increase the following quarter at prices between $19 and $23. Last quarter saw a ~10% trimming while this quarter saw a ~57% reduction at prices between $14.67 and $19.26. The stock currently trades at $18.59.

Avis Budget (NASDAQ:CAR): CAR was a very small 0.69% of the portfolio position established in Q1 2014 in the high-30s. It has since been built up to a 1.92% stake. Last quarter saw a ~12% increase at prices between $40 and $47. The stock currently trades at $29.69. This quarter saw a marginal reduction.

Note: Larry Robbins controls 9.36% of the business.

Cadence Design Systems (NASDAQ:CDNS): CDNS is a 1.02% of the US long portfolio position established in Q2 2014 at prices between $14.50 and $17.50. The original stake was since doubled at prices between $16.18 and $20.39. This quarter saw a ~62% reduction at prices between $20.52 and $23.12. The stock currently trades at $21.25.

Note: Glenview controls 2.91% of the business.

CBS Corporation (NYSE:CBS): CBS stake was established in 2013 and a large increased happened in Q4 2014 at prices between $48.91 and $56.45. There was a ~57% further increase over the last two quarters at prices between $38.67 and $62.77. This quarter saw an about-turn: ~20% reduction at prices between $39.47 and $51.75. The stock is now at $46.87.

Community Health Systems (NYSE:CYH): CYH is a 1.73% of the US long portfolio stake. The original position is from 2012 when around 8.5M shares were purchased at a cost-basis in the low-20s. The stock currently trades at $14.79. This quarter saw minor selling.

Note: Glenview's ownership stake in the business is at 9.81%.

Fidelity National Financial (NYSE:FNF): FNF is a 0.43% position established in Q3 2013. The bulk of the current stake was built during the first three quarters of 2014 in the mid-20s price-range. Last three quarters saw a combined ~79% reduction at prices between $34.29 and $40. The stock is now at $32.96. This quarter also saw a ~7% trimming.

Flextronics International (NASDAQ:FLEX): FLEX is a fairly large position at 3.48% of the US long portfolio. It is a very long-term stake first purchased in 2009. The stock currently trades at $10.70. This quarter saw a ~27% reduction at prices between $10.53 and $11.79.

Note: Robbins controls ~9.9% of FLEX.

Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) previously Google: GOOG is a ~1% stake purchased in Q1 & Q2 2015 at prices between $492 and $575. The stock is now at $707. This quarter saw a ~55% reduction at prices between $608 and $777. Robbins is harvesting gains from this position.

Hertz Global (NYSE:HTZ): HTZ is a 1.86% of the portfolio stake first purchased in Q1 2014 at prices between $25.70 and $28.50 and increased by ~50% the following quarter at prices between $26 and $30. Last quarter saw a ~43% increase at prices between $15.79 and $19.19. The stock currently trades well below his purchase price ranges at $8.83. This quarter saw a ~8% trimming. For investors attempting to follow Robbins, HTZ is a good option to consider for further research.

Note 1: Glenview has a 5.22% ownership stake in the business.

Note 2: HTZ has seen activist involvement recently: Carl Icahn has a large stake in the business.

Liberty Global (NASDAQ:LBTYA) (NASDAQ:LBTYK): Liberty Global is a 0.94% of the US long portfolio position established in Q2 2014. The following quarter saw the stake tripled at prices between $39.71 and $43.35. Last three quarters had seen a combined ~30% reduction at prices between $40.70 and $54.41. The pattern continued this quarter: ~30% further selling at prices between $37.50 and $44.54. The stock currently trades at $37.24.

ManpowerGroup (NYSE:MAN): MAN is a 2.28% position established in Q1 & Q2 2015 at prices between $64 and $92. It was reduced by ~21% this quarter at prices between $14.15 and $17.36. The stock is now at $15.97.

Note: Glenview controls 6.52% of ManpowerGroup.

Pentair Ltd. (NYSE:PNR): PNR is a ~1% stake first purchased in 2012. It was sold down since. Q3 2014 saw an about-turn as the position was increased by a whopping ~500% at prices between $63.65 and $73.22. Last two quarters had seen a combined ~22% reduction at prices between $50.58 and $68.71. This quarter saw another ~35% reduction at prices between $43 and $59.40. The stock currently trades at $49.13.

PVH Corporation (NYSE:PVH): PVH is a ~1% of the 13F portfolio position. The stake was built-up through consistent buying every quarter from Q3 2013 at prices between $97 and $138. Last quarter saw a ~17% reduction at prices between $96.76 and $119 and this quarter saw another ~44% selling at prices between $73 and $103. The stock currently trades at $76.38.

Note: Glenview controls 2.98% of the business.

Thermo Fisher Scientific (NYSE:TMO): The top-five 4.74% TMO position has been in the portfolio for almost a decade. The original stake was a fairly large ~7% of the portfolio position purchased in 2006 in the mid-30s. The following year saw a huge ~60% reduction but the stake was built back up in the following years. It was his largest stake at 7.14% of the portfolio as of Q4 2014. Q1 2015 saw a ~40% reduction at prices between $123 and $138. Q2 2015 saw an about-turn: around one-third increase at prices between $126 and $135. This quarter saw a ~30% reduction at prices between $122 and $143. The stock is now at $131.

VCA Inc. (NASDAQ:WOOF): WOOF is a 1.96% of the US long portfolio position established in Q2 2014 at prices between $30 and $36. In Q4 2014, the stake was increased by ~47% at prices between $37.58 and $49.30. Last quarter saw a ~37% reduction at prices between $52 and $61.53 and that was followed with a ~22% reduction this quarter at prices between $52.33 and $56.49. The stock currently trades at $50.98.

Note: Glenview still has a 7.84% ownership stake in the business.

WestRock Co. (NYSE:WRK): WRK is a 1.12% stake established last quarter due to the merger of Rock-Tenn with MeadWestavco. Robbins had a position in Rock-Tenn for which he received WRK shares. This quarter saw a ~76% reduction at prices between $43.57 and $57.57.

AutoNation Inc. (NYSE:AN), Bank of New York Mellon (NYSE:BK), Citigroup WTS, Citizens Financial Group (NYSE:CFG), Group 1 Automotive (NYSE:GPI), Jarden Corporation (NYSE:JAH), Lithia Motors (NYSE:LAD), PHH Corporation (NYSE:PHH), TransCanada Corporation (NYSE:TRP), and Vereit (NYSE:VER): These are very small (less than ~1% of the portfolio each) positions that were decreased further during the quarter.

Note: Glenview controls 8.83% of PHH Corporation, 7.46% of Group 1 Automotive and 1.17% of Lithia Motors.

Stake Increases:

Aetna Inc. (NYSE:AET): AET is a fairly large 3.49% of the US long portfolio stake. The original position is from Q4 2013 when around 1.8M shares were purchased. The following quarter saw the stake tripled at prices between $66.76 and $75.71. Since then, the position had seen some selling. In Q2 2015, the pattern reversed: ~58% increase at prices between $106 and $133. The stock currently trades at $107. Last two quarters have seen only minor adjustments.

Note 1: In July 2015, Aetna agreed to acquire Humana. Robbins also has a large position in Humana.

Note 2: AET has seen a couple of roundtrips in the portfolio in the last decade: A large ~5% portfolio stake was established in 2007 and was sold in 2009. Also a small ~1% position was purchased in 2010 and disposed of the following year.

American International Group (NYSE:AIG): AIG is a 0.62% of the US long portfolio stake first purchased in 2010 in the high-30s. The following two years saw the stake increased by around 7x at a cost-basis in the low-40s. The position has wavered since. Q2 2015 saw a two-thirds decrease at prices between $54.79 and $63.22 and last quarter saw a further ~42% reduction at prices between $55.66 and $64.54. The pattern reversed this quarter: ~37% increase at prices between $56.82 and $64.12. The stock currently trades at $52.10.

Anthem Inc. (NYSE:ANTM): ANTM is a fairly large 3.38% of the US long portfolio position. It was established in Q4 2014 at prices between $111 and $129 and increased by just over one-third the following quarter at prices between $123 and $158. Last two quarters saw minor selling while this quarter saw a marginal increase. The stock currently trades at $132.

Note: In July 2015, Anthem agreed to acquire CIGNA. Robbins has a position in CIGNA as well.

Brookdale Senior Living (NYSE:BKD): BKD is a 1.89% stake established in Q2 2014 at prices between $31 and $34. The original stake was since tripled at prices between $30.82 and $38.74. Last quarter saw a further ~52% increase at prices between $22.10 and $34.70. The stock currently trades at $13.94. For investors attempting to follow Robbins, BKD is a good option to consider for further research. This quarter also saw a marginal further increase.

Note: Glenview controls 9.82% of the business.

Cigna Corporation (NYSE:CI): CI is a very long-term stake that has been in the portfolio since 2007. There was a ~150% increase over the last two quarters at prices between $125 and $170. This quarter saw another ~52% increase at prices between $128 and $148. The stock is now at $136.

Note: Anthem agreed to acquire Cigna in July 2015 in a cash-and-stock deal valued at $188 per share ($103.40 cash). Robbins has a position in Anthem as well.

Dow Chemical (NYSE:DOW): DOW is a 2.69% of the portfolio stake established in Q3 2014 at prices between $51 and $55. Q1 2015 saw a stake doubling at prices between $43 and $50. In Q2 2015, there was a further ~22% increase at prices between $47.90 and $53.59. This quarter saw a ~28% further increase at prices between $42.40 and $56.97. The stock currently trades at $47.89.

Note: DOW has significant super-investor presence: Dan Loeb (Third Point) has a huge activist position. Leon Cooperman (Omega Advisors) also has a position. In December 2015, Dow and DuPont (NYSE:DD) announced a merger of equals with plans to separate into three businesses after the merger.

FMC Corporation (NYSE:FMC): FMC is a 2.62% of the portfolio stake established in Q1 2015 at prices between $55.72 and $64.59 and increased by ~180% the following quarter at prices between $51.77 and $60.95. Last quarter also saw a ~39% increase at prices between $32.93 and $52.55 and that was followed with a ~78% increase this quarter at prices between $34 and $43. The stock currently trades at $37.83.

Note 1: FMC has attracted some super-investor interest: Alexander Roepers (Atlantic Investment Management) and Michael Price (MFP Investors) have fairly large stakes.

Note 2: Glenview controls 8.90% of FMC.

HCA Holdings (NYSE:HCA): HCA is a long-term 5.45% stake that has been in the portfolio since 2011. Around 8.8M shares were purchased at a cost-basis in the low-20s. The stake was built up to just over 12.8M shares by Q4 2013. The four quarters thru Q2 2015 had seen a combined ~60% reduction at prices between $55.94 and $91.84. This quarter saw an about turn: ~160% increase at prices between $64.47 and $78.85. The stock currently trades at $69.93. For investors attempting to follow Glenview, HCA is a good option to consider for further research.

Humana Inc. (NYSE:HUM): The original HUM stake is from 2012 when around 2M shares were purchased at a cost-basis in the mid-70s. It is now the largest position at just over 8.25M shares. Q1 to Q3 2015 had seen a combined 3x increase at prices between $139 and $215. This quarter saw another ~25% increase at prices between $164 and $187. The stock currently trades at $172.

Note: Robbins controls 5.57% of HUM.

Laboratory Corp of America Holdings (NYSE:LH): LH is a 3.94% of the US long portfolio position established in Q2 2015 at prices between $116 and $126 and increased by ~22% last quarter at prices between $107 and $127. This quarter saw a ~16% further increase at prices between $109 and $125. The stock currently trades at $111.

Note: Robbins controls 5.59% of LH.

McKesson Corporation (NYSE:MCK) & Calls: MCK is a very long-term 2.44% position first purchased in 2008. Last quarter saw a ~76% increase at prices between $184 and $235 and that was followed with a ~21% increase this quarter at prices between $180 and $201. The stock currently trades at $156.

Monsanto Company (NYSE:MON): MON is the second largest 13F position at 7.81% of the US long portfolio. The bulk of the position was purchased in Q4 2013 and Q1 2014 a cost-basis around $110. Last quarter saw a ~22% increase at prices between $83.11 and $109. The stock now trades at $89.47. This quarter saw a ~4% further increase.

Priceline Group (NASDAQ:PCLN): The 1.81% PCLN stake was purchased in Q2 2015 at prices between $1107 and $1267 and reduced by ~21% last quarter at prices between $1117 and $1352. This quarter saw a ~20% increase at prices between $1237 and $1470. It is now at $1288.

Realogy Holdings (NYSE:RLGY): The 1.40% RLGY position was first purchased in Q3 2014 at prices between $36 and $41. The position has seen minor increases since. This quarter saw a ~7% increase at prices between $36.48 and $42.57. It currently trades below his purchase price ranges at $32.07.

Tenet Healthcare (NYSE:THC): THC is a medium-sized 3.05% portfolio stake established in 2012 at a cost-basis in the low-20s. The original position saw a ~38% increase in Q4 2013 at around $44. Last two quarters have seen a combined ~20% increase at prices between $27 and $61. The stock currently trades at $25.49.

Note: Glenview has a 17.96% ownership stake in THC.

Teva Pharmaceutical (NYSE:TEVA): TEVA is a 2.20% of the portfolio position. It was established in Q2 2015 at prices between $59 and $67 and more than doubled over the last two quarters at prices between $55 and $72. The stock currently trades near the low end of those ranges at $57.42. For investors attempting to follow Robbins, TEVA is a good option to consider for further research.

Aramark (NYSE:ARMK), Asbury Automotive Group (NYSE:ABG), Charter Communications , Kindred Healthcare (NYSE:KND), and Universal Health Services (NYSE:UHS): These are very small (less than ~1% of the portfolio each) positions increased this quarter.

Kept Steady:

HealthSouth Corp. (NYSE:HLS): The 1.34% HLS stake was established in Q1 2015 and increased significantly over the last two quarters. The build-up happened at prices between $36.85 and $47.93 and the stock is now at $32.44.

Note 2: Glenview Captial controls 7.46% of the business.

Manitowoc Inc. (NYSE:MTW), Meritor Inc. (NYSE:MTOR), and TerraForm Global (NASDAQ:GLBL): These are very small (less than ~1% of the portfolio each) stakes kept steady during the quarter.

Note 1: Manitowoc has seen activist presence with Carl Icahn establishing a significant stake recently.

Note 2: Glenview controls 7.04% of Manitowoc and 8.4% of Meritor Inc.

The spreadsheet below highlights changes to Robbins' US stock holdings in Q4 2015:

Disclosure: I am/we are long AIG, DOW, EBAY, GM, LNG, VER. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.