Tracking Larry Robbins' Glenview Capital Management Portfolio - Q4 2022 Update

Summary

• Glenview Capital Management’s 13F portfolio value increased from $4B to $4.51B this quarter. The number of positions decreased from 54 to 53.
• They added Universal Health Services, Meta Platforms, and Alphabet while reducing Aptiv and dropping Amazon. They also added a large short position through Puts on the SPDR S&P 500.
• The top three stakes are Cigna, Tenet Healthcare, and SPDR S&P 500 Index ETF Puts. They add up to ~31% 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 2/14/2023. 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 Q3 2022.

This quarter, Robbins' 13F portfolio value increased ~13% from $4B to $4.51B. The number of holdings decreased from 54 to 53. There are 37 positions that are significantly large. The focus of this article is on these larger positions. The top five stakes are Cigna, Tenet Healthcare, SPDR S&P 500 Index ETF Puts, DXC Technology, and Fiserv. Together they are at ~42% of the 13F assets.

New Stakes:

SPDR S&P 500 Index ETF (SPY) Puts, Universal Health Services (UHS), Meta Platforms (META), and Alphabet (GOOG): The large (top three) short position in SPY through Puts was established this quarter as the underlying traded between ~$357 and ~$408. SPY is currently at ~$389. UHS is a 2.83% of the portfolio position purchased this quarter at prices between ~$88 and ~$142 and it currently trades at ~$118. The 1.40% META stake was established at prices between ~$89 and ~$140 and it now goes for ~$198. The small 0.69% GOOG position was purchased at prices between ~$83.50 and ~$105 and the stock is now at ~$97.

Stake Disposals:

Amazon.com (AMZN): AMZN was a 3.26% of the portfolio stake established over the two quarters through Q1 2022 at prices between ~$136 and ~$185. There was a ~60% stake increase last quarter at prices between ~$106 and ~$145. The disposal this quarter was at prices between ~$82 and ~$121. The stock currently trades at ~$96.

Encompass Health (EHC): EHC stake was established in Q3 2021 at prices between ~$75 and ~$84. Next two quarters saw a ~220% stake increase at prices between ~$52 and ~$74. Last quarter saw the stake reduced by ~80% at prices between ~$45 and ~$54. The remainder stake was disposed this quarter. The stock is now at ~$52.

Longview Acquisition II: This was a $600M SPAC sponsored by Larry Robbins. It had an IPO in March 2021. The position got eliminated as the fund liquidated in December 2022.

Note: They owned 22.675M shares (26.3% of the shares outstanding) of Longview Acquisition II.

Bausch + Lomb (BLCO) and Microsoft Corporation (MSFT): These very small (less than ~1% of the portfolio each) stakes were disposed during the quarter.

Stake Increases:

Tenet Healthcare (THC): THC is currently the second largest position at 9.62% 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. The five quarters through Q1 2022 had seen a two-thirds selling at prices between ~$40 and ~$91. The last three quarters saw a ~40% stake increase at prices between ~$38 and ~$89. The stock currently trades at $54.23.

Note 1: Glenview still controls ~8.2% 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.

DXC Technology (DXC) previously Computer Sciences Corp: DXC is a large (top five) ~5.7% of the portfolio stake. The position was established in Q1 2016 at prices between $27 and $34. The four quarters through 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 three quarters through Q4 2021 at prices between ~$30 and ~$43 while next quarter saw a similar increase at prices between ~$29 and ~$39. That was followed with a ~22% stake increase last quarter at prices between ~$23 and ~$32. The stock is now at $23.33. There was a marginal increase this quarter.

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.

Global Payments (GPN): GPN is a 5.26% of the portfolio position built over the six quarters through Q1 2022 at prices between ~$120 and ~$218 and it is now well below that range at $99.48. There was a ~11% stake increase this quarter.

Coca-Cola Europacific Partners (CCEP): The 2.54% of the portfolio CCEP stake was built in H1 2021 at prices between ~$45 and ~$63. The three quarters through Q2 2022 saw a ~45% stake increase at prices between ~$43 and ~$60 while last quarter there was a ~35% selling at prices between ~$42.50 and ~$55. The stock currently trades at $55.82. There was a marginal increase this quarter.

HCA Healthcare (HCA) and Valvoline (VVV): The 2.53% VVV stake was built over the last three quarters at prices between ~$25 and ~$37. The stock currently trades at $33.42. There was a minor ~3% further increase this quarter. The 2.34% HCA stake saw a ~40% stake increase this quarter at prices between ~$184 and ~$245 and it is now at ~$247.

Activision Blizzard (ATVI), Alight, Inc. (ALIT), Brookdale Senior Living (BKD), Clarivate Plc (CLVT), Expedia Group (EXPE), Flex Ltd. (FLEX), Lennox International (LII), Myriad Genetics (MYGN), and ZoomInfo Technologies (ZI): These small (less than ~2% of the portfolio each) stakes were increased during the quarter.

Note: They have a ~7.4% ownership stake in Brookdale Senior Living.

Stake Decreases:

Cigna (CI): CI is currently the largest position at ~15% of the portfolio. It is a long term 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 in Q4 2021 while the next two quarters saw a stake doubling at prices between ~$218 and ~$272. The stock is now at ~$270. Last two quarters have seen a combined ~10% trimming.

Fiserv, Inc. (FISV): The 5.65% FISV position was primarily built Q1 2022 at prices between ~$93 and ~$110 and the stock currently trades at ~$109. Last quarter saw a ~25% stake increase at prices between ~$89 and ~$111. There was a minor ~5% trimming this quarter.

McKesson Corp. (MCK): The 5.41% 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 in the next two quarters there was a ~60% reduction at prices between ~$245 and ~$336. The stock is now at ~$335. Last quarter saw a ~10% trimming and that was followed with a marginal trimming this quarter.

US Foods Holding (USFD): The 2.90% of the portfolio USFD position was purchased over the two quarters through Q1 2022 at prices between ~$30 and ~$39 and it is now at $35.51. There was a ~17% selling this quarter at prices between ~$26 and ~$37.

Baxter International (BAX): The 2.27% 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 below that range at $38.23. There was a ~11% trimming this quarter.

Uber Technologies (UBER): The 2.19% UBER stake was built in Q3 2021 at prices between ~$38.50 and ~$52. There was a ~70% stake increase over the last two quarters at prices between ~$20.50 and ~$44.40. The stock is now at $31.97. Last two quarters have seen a ~7% trimming.

Aptiv PLC (APTV): The 1.90% 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 next quarter at prices between ~$149 and ~$178 while the last three quarters saw a ~325% stake increase at prices between ~$78 and ~$174. This quarter saw a ~60% reduction at prices between ~$78 and ~$112. The stock currently trades at ~$109.

Dupont de Nemours (DD): DD is a 1.71% 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. That was followed with a similar increase last quarter at prices between ~$50 and ~$63. This quarter saw a ~38% reduction at prices between ~$50.50 and ~$72. The stock is now at $67.84.

Alibaba Group Holding (BABA), Corteva (CTVA), Element Solutions (ESI), FMC Corporation (FMC), Las Vegas Sands (LVS), Norfolk Southern (NSC), Willis Towers Watson (WTW), and United Rentals (URI): These small (less than ~2% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

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 $1.91. Butterfly Network pioneered a handheld portable ultrasound machine. Glenview's stake is at 0.30% of the portfolio.

Booking Holdings (BKNG): The very small 0.83% BKNG stake was kept steady this quarter.

The spreadsheet below highlights changes to Robbins' 13F stock holdings in Q4 2022:

Larry Robbins - Glenview Capital's Q4 2022 13F Report Q/Q Comparison (John Vincent (author))

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, META 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.