Larry Robbins (Trades, Portfolio), founder of Glenview Capital Management, disclosed earlier this month he established three new holdings during the second quarter: UnitedHealth Group Inc. (NYSE:UNH), T-Mobile US Inc. (NASDAQ:TMUS) and United Rentals Inc. (NYSE:URI). Additionally, Robbins has kept increasing his position in Tenet Healthcare Corp. (NYSE:THC) over the past two months according to GuruFocus Real-Time Picks, a Premium feature.
Robbins' firm operates two funds: Glenview Funds, a long-and-short fund, and Glenview Opportunity Funds, a concentrated fund. The firm is focused on delivering attractive absolute returns through an intense focus on deep fundamental research and individual stock selection. The investments are primarily focused on the U.S., with a smaller amount of exposure to Europe.
As of quarter-end, Robbins' $11.04 billion equity portfolio contained 46 stocks, with 56.07% exposure to the health care sector, up approximately 3.01% from that of the first quarter.
Robbins purchased 726,468 shares of UnitedHealth, giving the position 1.61% weight in the equity portfolio. Shares averaged $240.34 during the quarter.
The Minnetonka, Minnesota-based company provides health insurance services to its members through products for every major insurance market: individual, group and government sponsored. GuruFocus ranks the company's profitability 7 out of 10: Even though the gross margin has declined over the past five years and its operating margin underperforms 55.56% of global competitors, UnitedHealth's business predictability ranks five stars out of five on strong and consistent revenue and earnings growth over the past 10 years.
Gurus with large holdings in UnitedHealth include the Vanguard Health Care Fund (Trades, Portfolio), Dodge & Cox, Andreas Halvorsen (Trades, Portfolio) and Steve Mandel (Trades, Portfolio).
Robbins purchased 1,192,665 shares of T-Mobile, giving the stake 0.80% equity portfolio space. Shares averaged $74.31 during the quarter.
The Bellevue, Washington-based wireless carrier operates a network of postpaid and prepaid connections, with over 83 million customers as of quarter-end. CEO John Legere said in a July 25 press release that the company recorded "record-low customer churn and record service revenue" during the quarter, while increasing net customer additions by 1 million for the 25th quarter in a row.
GuruFocus ranks T-Mobile's profitability 5 out of 10: Although the company's operating margin has increased approximately 29.80% per year on average over the past five years, profit margins are underperforming over 51% of global competitors.
Robbins purchased 417,802 shares of United Rentals, giving the holding 0.50% equity portfolio weight. Shares averaged $126.94 during the quarter.
The Stamford, Connecticut-based company offers rentals for aerial work platforms, earth-moving equipment, forklifts, light towers and various plumbing materials. GuruFocus ranks United Rentals' profitability 6 out of 10: Although the company's operating margin and return on equity outperform over 82% of global competitors, its three-year Ebitda growth rate of 9.40% outperforms just 9.40% of global competitors.
Robbins disclosed a holding of 19,410,285 shares of Tenet Healthcare on Aug. 16 according to GuruFocus Real-Time Picks. Shares traded around $19.82 that day.
The Dallas-based company operates over 79 acute-care hospitals with more than 20,000 beds, as well as over 475 ambulatory surgery centers, diagnostic imaging centers and urgent care centers. According to GuruFocus, the company's Piotroski F-score is a solid 6 out of 9.
Disclosure: No positions.
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This article first appeared on GuruFocus.
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