Tracking Larry Robbins' Glenview Capital Management Portfolio - Q1 2018 Update

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Includes: AET, AGN, ANTM, CAR, CBS, CI, CVS, DWDP, DXC, EBAY, ESRX, FDC, FDX, FLEX, FMC, GOOG, HCA, IQV, LBTYK, LH, MCK, NWL, PNR, SHPG, THC, TMO, TMUS, UHS, WBA, WMB
by: John Vincent

Summary

Glenview Capital Management’s 13F portfolio value decreased from $18.50B to $17.10B this quarter. The number of positions decreased from 58 to 52.

Larry Robbins added Express Scripts and substantially increased Newell Brands during the quarter.

The top three positions are HCA Holdings, Shire plc, and DowDuPont and they add up to ~17% of the portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Larry Robbins’ 13F portfolio on a quarterly basis. It is based on Robbins’ regulatory 13F Form filed on 05/15/2018. Please visit our Tracking Larry Robbins’ Glenview Capital Management Portfolio article for an idea on his investment philosophy and our previous update for the fund’s moves during Q4 2017.

This quarter, Robbins’ 13F portfolio value decreased ~8% from $18.50B to $17.10B. The number of holdings decreased from 58 to 52. The top five positions are HCA Holdings, Shire plc, DowDuPont, FMC Corp, and Iqvia Holdings. Together, they are at ~26% of the 13F assets.

Stake Disposals:

Apple Inc. (NASDAQ:AAPL): AAPL was a small ~1% stake as of last quarter. It was first purchased in Q3 2016 at prices between $95 and $116 and increased by a whopping ~350% the following quarter at prices between $103 and $118. There was a ~20% selling in Q2 2017 at prices between $141 and $156 and that was followed with a ~50% reduction in Q4 2017 at prices between $153 and $176. The stock is now at ~$188. The disposal this quarter was at prices between $155 and $182.

AbbVie Inc. (NYSE:ABBV), Coca Cola European Partners (NYSE:CCE), Dun & Bradsheet (NYSE:DNB), Kinder Morgan (NYSE:KMI), Kindred Healthcare (NYSE:KND), LyondellBasell Industries (NYSE:LYB), Monsanto Company (NYSE:MON), Tailored Brands (NYSE:TLRD), and WorldPay (NYSE:WP) previously Vantiv: These very small positions (less than ~1% of the portfolio each) were eliminated this quarter.

New Stakes:

Express Scripts (NASDAQ:ESRX) and T-Mobile US (NASDAQ:TMUS): ESRX is a ~2% of the portfolio stake established this quarter at prices between $68 and $81 and the stock currently trades at $76.80. The 1.61% TMUS position was purchased at prices between $57.50 and $66 and it is now at $56.98.

Note: In March, Cigna agreed to acquire Express Scripts in a cash-and-stock deal ($48.75 cash and 0.2434 shares of the combined business for each share held). Last month T-Mobile agreed to acquire Sprint.

AmerisourceBergen Corp. (NYSE:ABC), Humana Inc. (NYSE:HUM), and Facebook Inc. (NASDAQ:FB): These are minutely small (less than ~0.5% of the portfolio each) stakes established during the quarter.

Stake Decreases:

HCA Healthcare (NYSE:HCA): HCA is currently the largest position at 6.73% of the portfolio. The original stake was from 2011 when 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 $56 and $92. Q4 2015 saw an about turn: ~160% increase at prices between $64 and $79. The stock currently trades at ~$104. There was a ~20% selling last quarter at prices between $74 and $90 and that was followed with a ~4% trimming this quarter.

DowDupont (NYSE:DWDP) previously Dow Chemical: DWDP is a top three ~5% 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. The next three quarters saw another ~70% increase at prices between $42 and $57. H1 2016 saw a ~40% selling at prices between $41 and $54. The first three quarters of 2017 had seen a ~160% stake increase at prices between $52 and $65. The stock currently trades at $66.38. There was a ~8% trimming last quarter and that was followed with a ~11% reduction this quarter.

Note: In December 2015, Dow Chemical and DuPont announced a merger of equals. That transaction closed last September. DuPont shareholders received DowDuPont shares in the ratio 1:1.282. Glenview had a small position in DuPont.

FMC Corporation (NYSE:FMC): FMC is a top five 4.57% of the portfolio stake established in Q1 2015 at prices between $55 and $65 and increased by ~180% the following quarter at prices between $51.50 and $61. Q3 2015 also saw a ~40% increase at prices between $33 and $52.50 and that was followed with a ~75% increase in the following quarter at prices between $34 and $43. The stock currently trades at $88.33. H1 2017 had seen a one-third increase at prices between $70 and $77. Last three quarters have seen a combined ~22% reduction at prices between $73 and $98.

Note 2: Glenview controls ~8% of FMC.

Iqvia Holdings (NYSE:IQV) previously Quintiles IMS: The top five 4.43% IQV stake was established in Q2 2016 at prices between $61 and $71 and increased by ~75% in the following quarter at prices between $65 and $81. There was a stake doubling in Q4 2016 primarily due to the merger transaction between Quintiles & IMS that closed in October. The stock is now at ~$102. There was a 30% increase in Q2 2017 at prices between $78 and $91. Last quarter saw a ~4% trimming and that was followed with a ~10% reduction this quarter.

Thermo Fisher Scientific (NYSE:TMO): The 3.58% TMO position has been in the portfolio for over a decade. The original stake was a fairly large ~7% of the portfolio position purchased in 2006 in the mid-30s price range. The position wavered but by Q4 2014, the stake was still at ~7% of the portfolio. Q1 2015 saw a ~40% reduction at prices between $123 and $138. H1 2016 had also seen a ~50% selling at prices between $122 and $154. There was a one-third increase in Q4 2016 at prices between $140 and $159 while the following quarter saw a ~20% selling at prices between $141 and $161. The stock is now at ~$216. Last quarter saw a ~22% increase at prices between $182 and $200 while this quarter there was a ~11% trimming.

Flex Ltd. (NASDAQ:FLEX) previously Flextronics International: FLEX is a ~3% of the 13F portfolio position. It is a very long-term stake first purchased in 2009. Q4 2015 saw a ~27% reduction at prices between $10.50 and $12 and that was followed with a ~13% trimming in Q1 2016. Q3 2016 saw another ~20% selling at prices between $11.50 and $14 and that was followed with a ~15% selling in Q1 2017 at prices between $14 and $17. Q2 2017 saw the pattern reverse: ~20% increase at prices between $15 and $17.75. The stock currently trades at $13.92. There was a ~17% reduction this quarter at prices between $16 and $19.70.

Note: Robbins controls ~6% of FLEX.

DXC Technology (NYSE:DXC) previously Computer Sciences Corp: DXC is a ~3% portfolio stake. It was established in Q1 2016 at prices between $27 and $34. The position was increased by ~25% since. The stock is now at $99.70. There was a ~12% selling last quarter at prices between $85 and $99 and that was followed with a ~25% reduction this quarter at prices between $92 and $107.

Note: Computer Sciences Corporation and Hewlett Packard Enterprise (NYSE:HPE) had announced a spin-merger transaction whereby HPE’s Enterprise Services business was to be spun-off and merged into CSC to form a new business DXC Technology. That transaction closed in April 2017. Terms called for CSC shareholders to receive one share of DXC for each CSC share held.

Anthem Inc. (NYSE:ANTM): ANTM is a fairly large 2.84% of the 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. There was a ~40% increase in Q3 2016 at prices between $113 and $122. 2017 saw a ~48% combined reduction at prices between $144 and $232. There was a ~25% selling this quarter at prices between $216 and $258. The stock currently trades at ~$231. Robbins is realizing gains.

United Health Services (NYSE:UHS): The ~2.5% UHS stake saw a ~17% increase in Q3 2017 and that was followed with a ~80% increase last quarter at prices between $96 and $115. The stock is currently at ~$116. There was marginal trimming this quarter.

Aetna Inc. (NYSE:AET): AET is a 2.80% of the 13F portfolio stake. The original position was from Q4 2013 when around 1.8M shares were purchased. The following quarter saw the stake tripled at prices between $66.50 and $76. Since then, the position had seen some selling. In Q2 2015, the pattern reversed: ~60% increase at prices between $106 and $133. Q2 2017 saw a one-third reduction at prices between $127 and $153 while there was a ~15% increase the following quarter at prices between $152 and $163. Last quarter saw a ~25% selling at prices between $151 and $183. The stock currently trades at ~$177. There was a marginal reduction this quarter.

Note 1: In July 2015, Aetna agreed to acquire Humana. The DOJ sued to block the deal and the judge sided with the government’s position in early February 2017. Soon after, Aetna & Humana dropped their merger plans. In December last year, CVS agreed to acquire Aetna in a $204 per share cash-and-stock deal ($145 cash and 0.8378 CVS share for each share held).

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.

EBay Inc. (NASDAQ:EBAY): EBAY was a minutely small 0.37% position in Q1 2017. The following quarter saw a ~450% increase at prices between $32 and $36 and that was followed with a ~17% increase in Q3 2017. The pattern continued last quarter: ~27% increase at prices between $34 and $39. The stock is currently at $37.79 and the stake is at 2.71% of the portfolio. There was a ~13% selling this quarter.

Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL): GOOG is a 2.44% stake purchased in Q1 & Q2 2015 at prices between $492 and $575. Q4 2015 saw a ~55% reduction at prices between $608 and $777 while the following quarter saw a ~63% increase at prices between $678 and $765. There was a stake doubling in Q4 2016 at prices between $736 and $813. Q1 2017 saw a ~17% selling at prices between $786 and $852. Last quarter saw a ~20% reduction at prices between $951 and $1077 and that was followed with a similar selling this quarter at prices between $1001 and $1176. The stock is now at $1079.

Liberty Global (NASDAQ:LBTYA) (NASDAQ:LBTYK): Liberty Global is a 2.23% of the 13F portfolio position established in Q2 2014. The following quarter saw the stake tripled in the high-30s price range. 2015 saw a ~50% overall reduction at prices between $33 and $50. H1 2016 saw an about turn: ~135% increase at prices between $30 and $36. There was another ~40% increase in Q4 2016 at prices between $28.50 and $33. The stock currently trades at $27.92. Q2 2017 saw a ~7% increase while last quarter saw a similar reduction. There was a ~6% trimming this quarter.

Note: The prices quoted above are adjusted for the Liberty LiLac tracking stock distribution in June 2016.

Cigna Corporation (NYSE:CI): CI is a very long-term ~2% stake that has been in the portfolio since 2007. There was a ~200% increase over the last three quarters of 2015 at prices between $125 and $170. The stock is now at ~$176. 2017 saw a ~54% combined reduction at prices between $135 and $210 and that was followed with a ~18% selling this quarter at prices between $164 and $226.

Note: Anthem agreed to acquire Cigna in July 2015 in a cash-and-stock deal valued at $188 per share ($103.40 cash). DOJ had filed a lawsuit to block the deal and in early February 2017 the Judge ruled in the government’s favor. Anthem terminated the merger-deal in May 2017. This March, Cigna agreed to acquire Express Scripts (see details under Express Scripts above).

CBS Corporation (NYSE:CBS): The ~2% stake was first purchased in 2013 and a large increase happened in Q4 2014 at prices between $49 and $57. There was a ~57% further increase over Q2 & Q3 2015 at prices between $39 and $63. The position has since wavered. Recent activity follow: Q3 2016 saw a ~85% stake increase at prices between $50 and $58 and that was followed with a ~60% reduction next quarter at prices between $54.50 and $65. The stock is now at $50.60. 2017 saw a combined ~32% increase at prices between $55 and $69. There was a ~3% trimming this quarter.

First Data Corp. (NYSE:FDC): FDC is a ~2.4% portfolio position that saw a ~40% increase in Q3 2017 at prices between $17.50 and $19 and another ~60% increase last quarter at prices between $16 and $19. The stock is now at $19.51. There was a ~7% trimming this quarter.

Note: Glenview controls 5.72% of First Data Corp.

Laboratory Corp of America Holdings (NYSE:LH): LH is a 1.76% of the portfolio position established during the last three quarters of 2015 at prices between $107 and $127. Q3 2016 saw an about turn: ~23% selling at prices between $131 and $141 and that was followed with ~36% selling in Q1 2017 at prices between $129 and $144. The stock currently trades at ~$175. There was a one-third reduction this quarter at prices between $161 and $178.

Avis Budget (NASDAQ:CAR): CAR was a very small position established in Q1 2014 in the high-30s price range. It was since built up to a 1.70% stake. The stock currently trades at $43.02. This quarter saw a ~19% selling at prices between $38.50 and $50.50.

Note: Larry Robbins controls 7.5% of the business.

Visa Inc. (NYSE:V): The ~1% Visa position as of last quarter was reduced by ~75% to a minutely small 0.28% portfolio stake this quarter at prices between $114 and $126. The position was first purchased in Q4 2016 at prices between $75.50 and $83.50. There was a ~12% increase in the following quarter at prices between $78 and $90 and that was followed with another ~25% increase in Q2 2017 at prices between $88.50 and $96.50. The stock is now at ~$132. Q3 2017 had seen a ~25% selling at prices between $93 and $106 and that was followed with a ~20% reduction last quarter at prices between $105 and $114.

Aptiv plc (NYSE:APTV): The 1.33% APTV stake was purchased last quarter at prices between $83 and $105 and it is now at $97.68. There was a ~9% selling this quarter.

Brookdale Senior Living (NYSE:BKD), Comcast Corp (NASDAQ:CMCSA), Conduent Inc. (NYSE:CNDT), Mohawk Industries (NYSE:MHK), Platform Specialty Products (NYSE:PAH), Realogy Holdings (NYSE:RLGY), and Vereit (NYSE:VER): These small stakes (less than ~1% of the portfolio each) saw reductions this quarter.

Note: Glenview controls ~9% of Brookdale Senior Living.

Stake Increases:

Shire plc (NASDAQ:SHPG): SHPG is a large (top three) 5.24% position established in Q1 2017 at prices between $162 and $186 and increased by ~70% in Q2 2017 at prices between $162 and $190. The following quarter saw a huge ~240% stake increase at prices between $141 and $170. The stock is now at $164.50. There was a ~5% increase this quarter.

Note: Takeda Pharmaceutical is acquiring Shire plc in a cash-and-stock deal valued at ~$194 per share ($30.33 cash and 1.678 Takeda ADSs for each ordinary share – SHPG represents three ordinary shares).

Newell Brands (NYSE:NWL) and Allergan plc (NYSE:AGN): NWL is a fairly large ~4% portfolio position established last quarter at prices between $28 and $44 and increased by ~50% this quarter at prices between $25 and $32. The stock currently trades at $25.11. AGN is a ~1.5% position purchased last quarter at prices between $163 and $211 and increased by one-third this quarter at prices between $144 and $188. The stock is now at ~$154. For investors attempting to follow Robbins, these two are good options to consider for further research.

Note: Robbins controls 5.56% of Newell Brands.

McKesson Corp. (NYSE:MCK): The 3.62% MCK stake saw a ~130% increase in Q3 2017 at prices between $146 and $168 and that was followed with a ~40% increase last quarter at prices between $135 and $163. There was another ~16% increase this quarter at prices between $139 and $177. The position was first purchased in Q4 2016 and built up over the next two quarters at prices between $124 and $167. The stock is now at $144.

Walgreens Boots Alliance (NASDAQ:WBA): WBA was first purchased in Q4 2016 but was disposed the following quarter. Another small position was established in Q2 2017 at prices between $76 and $87 but the following quarter saw the position almost eliminated. Last quarter saw a much larger 2.68% portfolio stake built at prices between $64.50 and $77. There was a ~20% stake increase this quarter at prices between $63 and $80. The stock is now at $63.41.

CVS Health (NYSE:CVS): CVS is a 2.84% portfolio position established in Q3 2017 and increased by ~400% last quarter at prices between $66.75 and $81. There was a ~14% increase this quarter at prices between $60.50 and $83.50. The stock is now at $65.12.

Williams Companies (NYSE:WMB): WMB is a small 1.51% portfolio position that saw a combined ~60% increase in H2 2017 at prices between $27 and $32 and it is now at $27.19. There was a marginal increase this quarter.

FedEx Corp (NYSE:FDX), Pentair plc (NYSE:PNR), Lowe’s Companies (NYSE:LOW), Cardinal Health (NYSE:CAH), and Aramark (NYSE:ARMK): These five positions saw substantial stake increases this quarter. The 1.67% FDX stake was more than doubled this quarter at prices between $229 and $274 and it is now at ~$252. PNR is a 1.57% position that saw a ~75% increase this quarter at prices between $44.50 and $50 and the stock is now at $45.42. The 1.13% LOW positon saw a two-thirds increase at prices between $83.50 and $107 and the stock currently trades at $96.49. The 1.11% CAH stake saw a whopping ~300% stake increase at prices between $61 and $75 and it is now well below that range at $52.44. The ~1% ARMK positon saw a ~150% stake increase at prices between $38 and $46 and it currently goes near the low end of that range at $38.79. For investors attempting to follow Robbins, Cardinal Health is a good option to consider for further research.

Delphi Technologies (NYSE:DLPH), Endo International plc (NASDAQ:ENDP), Hertz Global (NYSE:HTZ), Meritor Inc. (NYSE:MTOR), and Michaels Companies (NASDAQ:MIK): These very small stakes (less than ~1% of the portfolio each) saw increases this quarter.

Note: Glenview controls ~9% of Endo International plc and ~5.7% of Hertz Global.

Kept Steady:

Tenet Healthcare (NYSE:THC): THC is a 2.54% portfolio stake established in 2012 at a cost-basis in the low-20s. The original position saw a ~40% increase in Q4 2013 at around $44. Last two quarters of 2015 saw a combined ~20% increase at prices between $27 and $61. The stock currently trades at $33.70.

Note: Glenview has a 17.77% ownership stake in THC. In August 2017, Glenview’s two directors resigned from THC’s board citing irreconcilable differences. In March, Tenet’s board reached an agreement with Glenview whereby they agreed to vote in favor of the board’s nominees in return for byelaw amendments.

Citigroup WTS: The warrants are a minutely small position kept steady this quarter.

The spreadsheet below highlights changes to Robbins’ US stock holdings in Q1 2018:

Larry Robbins - Glenview Capital Management - Q1 2018 13F Report

Disclosure: I am/we are long AGN, VER, KMI.

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.