Tracking Larry Robbins' Glenview Capital Management Portfolio - Q1 2022 Update

Jun. 07, 2022 8:48 PM ETABC, AMZN, ELV, APTV, APTV.PA, BAX, BFLY, BHC, BKD, BSX, CCEP, CHNG, CI, CMI, CNC, CTVA, DD, DVA, DXC, EHC, ESI, FISV, FLEX, FMC, GOOG, GOOGL, GPN, HCA, HOLX, HPE, HUM, IS, LGV, LGV.U, LVS, MCK, MYGN, NSC, NSP, QSI, SABR, SABRP, THC, UBER, UHID, UHS, UNP, USFD, VVV, BHC:CA2 Comments10 Likes
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Summary

  • Glenview Capital Management’s 13F portfolio value increased from $4.69B to $4.94B this quarter. The number of positions increased from 57 to 60.
  • They increased Cigna, DXC Technology, Fiserv, US Foods Holding, Amazon.com, and Aptiv plc while decreasing McKesson, Bausch Health, FMC Corp., Hologic, and DaVita.
  • The top three stakes are Tenet Healthcare, Cigna, and Global Payments. They add up to ~26% of the portfolio.

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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 5/16/2022. 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 2021.

This quarter, Robbins' 13F portfolio value increased ~5% from $4.69B to $4.94B. The number of holdings increased from 57 to 60. There are 41 positions that are significantly large. The focus of this article is on these larger positions. The top five stakes are Tenet Healthcare, Cigna, Global Payments, McKesson Corp, and DXC Technology. Together they are at ~37% of the 13F assets.

New Stakes:

Valvoline (VVV) and Las Vegas Sands (LVS): VVV is a 1.11% of the portfolio stake established this quarter at prices between ~$28.50 and ~$37 and the stock currently trades at $34.69. The 0.80% LVS position was purchased at prices between ~$32 and ~$48 and it is now at $35.83.

Stake Disposals:

Alphabet (GOOGL) Puts, Anthem Inc. (ANTM), Humana Inc. (HUM), and Willis Towers Watson (WTW): These small (less than ~2% of the portfolio each) stakes were disposed during the quarter.

Stake Increases:

Cigna Corporation (CI): CI is a very long-term top-three 8.23% stake that has been in the portfolio since 2007. Recent activity follows: The two quarters through Q1 2021 had seen a ~43% increase at prices between ~$163 and ~$228 while next quarter saw a roughly one-third reduction at prices between ~$232 and ~$267. There was a ~15% trimming last quarter while this quarter there was a ~55% stake increase at prices between ~$218 and ~$246. The stock is now at ~$262.

Global Payments (GPN): GPN is a top-three 6.53% of the portfolio position built over the last six quarters at prices between ~$120 and ~$218 and it is now at ~$129.

DXC Technology (DXC) previously Computer Sciences Corp: DXC is a ~5% of the portfolio stake. The position was established in Q1 2016 at prices between $27 and $34. The four quarters thru Q3 2018 had seen a combined ~38% selling at prices between $75 and $96 while next quarter the stake was almost doubled at prices between $50 and $94. Q1 2019 also saw a ~20% stake increase at prices between $53 and $69. There was a ~53% selling over the last three quarters at prices between ~$30 and ~$43 while this quarter saw a similar increase at prices between ~$29 and ~$39. The stock is now at $35.69.

Note: Computer Sciences Corporation and Hewlett Packard Enterprise (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.

Fiserv, Inc. (FISV): The 4.40% FISV position was primarily built this quarter at prices between ~$93 and ~$110 and the stock currently trades at ~$101.

Baxter International (BAX): The 3.47% of the portfolio stake in BAX was built over the three quarters through Q3 2021 at prices between ~$74 and ~$88. The stock currently trades just below that range at $72.58. There was a marginal increase in the last two quarters.

Amazon.com (AMZN) and US Foods Holding (USFD): AMZN is a 2.70% of the portfolio stake established over the last two quarters at prices between ~$136 and ~$185 and the stock currently trades well below that range at ~$123. The 3.37% of the portfolio USFD position was purchased over the last two quarters at prices between ~$30 and ~$39 and it is now at $32.58.

Coca-Cola Europacific Partners (CCEP): The 2.80% of the portfolio CCEP stake was built in H1 2021 at prices between ~$45 and ~$63. Last quarter saw a ~22% stake increase at prices between ~$49 and ~$58. That was followed with a minor ~7% increase this quarter. The stock currently trades at $53.89.

Uber Technologies (UBER): The 2.77% UBER stake was built in Q3 2021 at prices between ~$38.50 and ~$52. There was a ~50% stake increase this quarter at prices between ~$28.50 and ~$44.50. The stock is now at $25.30.

Aptiv plc (APTV): The 2.67% of the portfolio APTV stake was built over the four quarters through Q3 2021 at prices between ~$94 and ~$170. There was a one-third selling last quarter at prices between ~$149 and ~$178 while this quarter saw a stake doubling at prices between ~$98 and ~$174. The stock currently trades at ~$110.

DuPont de Nemours (DD): DD is a 2.30% of the portfolio position that saw the stake almost doubled in Q2 2021 at prices between ~$75 and ~$86. Next quarter also saw a ~22% stake increase at prices between ~$67 and ~$79.50. The stock is now at ~$68. Last two quarters have seen only minor adjustments.

Meritor, Inc. (MTOR): The 2.55% MTOR stake was built over the last two quarters at prices between ~$21 and ~$36 and the stock currently trades at $36.14.

Note: They control ~5% of the business. In February, Cummins (CMI) agreed to acquire Meritor in a $36.50 per share deal.

Encompass Health (EHC): EHC is a 1.85% of the portfolio stake established in Q3 2021 at prices between ~$75 and ~$84. Last quarter saw a ~85% stake increase at prices between ~$56 and ~$74. That was a followed with a ~75% increase this quarter at prices between ~$51.50 and ~$71.50. The stock is now at $61.37.

Butterfly Network (BFLY): Longview Acquisition, a $345M SPAC sponsored by Larry Robbins did a ~$1.5B EV deal to merge with Butterfly Network in November 2020. The deal closed last February. The stock peaked at ~$27 per share and currently trades at $3.56. Butterfly Network pioneered a handheld portable ultrasound machine. Glenview's stake is at 0.53% of the portfolio. This quarter saw a ~10% stake increase.

Boston Scientific (BSX), Brookdale Senior Living (BKD), Change Healthcare (CHNG), Element Solutions (ESI), Flex Ltd. (FLEX), Insperity (NSP), ironSource (IS), and Myriad Genetics (MYGN): These small (less than ~2% of the portfolio each) stakes were increased during the quarter.

Note: They have a ~8.2% ownership stake in Brookdale Senior Living.

Stake Decreases:

Tenet Healthcare (THC): THC is currently the largest position at ~11% of the portfolio. It was established in 2012 at a cost-basis in the low-20s. The original position saw a ~40% increase in Q4 2013 at around $44. Recent activity follows. Last five quarters have seen a two-thirds selling at prices between ~$40 and ~$91. The stock currently trades at $67.88. They are harvesting gains.

Note 1: Glenview still controls ~6 % of the business.

Note 2: In August 2017, Glenview's two directors resigned from THC's board citing irreconcilable differences. In March 2018, 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.

McKesson Corp. (MCK): The large (top five) ~6% MCK stake was established during the five quarters through Q4 2017 at prices between $124 and $167. The position has wavered. Recent activity follows. Q3 2021 saw a ~28% increase at prices between ~$188 and ~$209 while this quarter there was a ~45% reduction at prices between ~$245 and ~$311. The stock is now at ~$322.

Bausch Health Companies (BHC): BHC is a 4.28% of the portfolio position established in Q3 2018 at prices between $20.50 and $27.50 and built over the next two quarters at prices between $17.50 and $28.50. H2 2019 saw a two-thirds stake increase at prices between $19 and $32. There was a ~50% reduction over the last two quarters at prices between ~$21.50 and ~$29.50. The stock is now at $9.11.

AmerisourceBergen Corp. (ABC): The 2.36% ABC position saw a ~30% stake increase in Q2 2020 at prices between $81 and $102. There was a stake doubling in Q1 2021 at prices between ~$96 and ~$119. Last two quarters saw a ~60% reduction at prices between ~$114 and ~$157. The stock currently trades at ~$150.

Centene Corp. (CNC): CNC is a 1.86% of the portfolio position purchased in Q2 2021 at prices between ~$59.50 and ~$74.50. The position was sold down by ~50% over the last two quarters at prices between ~$62 and ~$88. The stock currently trades at $83.35.

Universal Health Services (UHS): UHS is a 1.82% of the portfolio position built in H1 2020 at prices between $85 and $111. Q1 2021 saw a ~85% stake increase at prices between ~$125 and ~$143. There was a ~45% selling over the last four quarters at prices between ~$122 and ~$160. The stock is now at ~$122.

Alphabet Inc. (GOOG) (GOOGL), Corteva (CTVA), DaVita Inc. (DVA), HCA Healthcare (HCA), FMC Corporation (FMC), Hologic (HOLX), Norfolk Southern (NSC), Quantum-Si (QSI), Sabre Corp. (SABR), and Union Pacific (UNP): These small (less than ~2% of the portfolio each) stakes were reduced this quarter.

Kept Steady:

Longview Acquisition Corp. II (LGV): LGV is a $600M SPAC sponsored by Larry Robbins. It had an IPO last March. The stock currently trades at $9.77, slightly below trust value.

Note: Regulatory filings show them owning 22.675M shares (26.3% of the shares outstanding) of Longview Acquisition II. ~17.2M shares in sponsor units which they got for $25K and the rest (5M units) purchased at IPO for $10 per share. Overall, their cost basis is less than $2 per share.

The spreadsheet below highlights changes to Robbins' 13F stock holdings in Q1 2022:

Larry Robbins - Glenview Capital's Q1 2022 13F Report Q/Q Comparison

Larry Robbins - Glenview Capital's Q1 2022 13F Report Q/Q Comparison (John Vincent (author))

This article was written by

John Vincent profile picture
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Focused on cloning strategies by analyzing 13F reports of a curated set of around fifty super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.
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Disclosure: I/we have a beneficial long position in the shares of AMZN, BHC, GOOGL, IS, QSI either through stock ownership, options, or other derivatives. 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.

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