U.S. markets closed
  • S&P 500

    4,486.46
    +15.09 (+0.34%)
     
  • Dow 30

    35,258.61
    -36.15 (-0.10%)
     
  • Nasdaq

    15,021.81
    +124.47 (+0.84%)
     
  • Russell 2000

    2,267.84
    +2.19 (+0.10%)
     
  • Crude Oil

    82.29
    +0.01 (+0.01%)
     
  • Gold

    1,764.80
    -3.50 (-0.20%)
     
  • Silver

    23.23
    -0.12 (-0.53%)
     
  • EUR/USD

    1.1620
    +0.0019 (+0.16%)
     
  • 10-Yr Bond

    1.5840
    +0.0650 (+4.28%)
     
  • GBP/USD

    1.3725
    +0.0048 (+0.35%)
     
  • USD/JPY

    114.3080
    +0.6310 (+0.56%)
     
  • BTC-USD

    61,516.59
    +1,690.70 (+2.83%)
     
  • CMC Crypto 200

    1,430.53
    -21.11 (-1.45%)
     
  • FTSE 100

    7,203.83
    -30.20 (-0.42%)
     
  • Nikkei 225

    29,025.46
    +474.56 (+1.66%)
     

Larry Robbins' Firm Chips Away at Top Holdings During the 1st Quarter

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Glenview Capital Management, the firm founded by Larry Robbins (Trades, Portfolio), disclosed over the past few weeks that its top five sells during the first quarter were in Cigna Corp. (NYSE:CI), HCA Healthcare Inc. (NYSE:HCA), Hologic Inc. (NASDAQ:HOLX), IQVIA Holdings Inc. (NYSE:IQV) and The Walt Disney Co. (NYSE:DIS). Cigna and HCA are among the firm's top five holdings as of March 31.


The New York-based firm manages approximately $13.3 billion in assets as of the latest ADV form, split between the long-and-short Glenview Funds and a concentrated, optimistic Glenview Opportunity Funds. The firm seeks capital appreciation through deep fundamental research and individual security selection.

20fe61b6dcd859c2aae7c6bd2ec2a867.png
20fe61b6dcd859c2aae7c6bd2ec2a867.png

As of the quarter-end, the $3.66 billion equity portfolio contains 43 stocks with a turnover of 7%. The health care sector occupies 69.34% of the equity portfolio, while the technology and materials sectors occupy just 12.49% and 6.17% of the portfolio.

1b2b9d9e7673318b74ac52926293752d.png
1b2b9d9e7673318b74ac52926293752d.png

Cigna

Glenview sold 2,708,765 shares of Cigna, zapping 64.86% of the holding and 4.86% of the equity portfolio. The transaction dropped Cigna from the second-largest position in the portfolio to the third-largest holding. Shares averaged $194.84 during the first quarter.

6f434f0eb672a67e4a6abf2d4ef58e7b.png
6f434f0eb672a67e4a6abf2d4ef58e7b.png

The Bloomfield, Connecticut-based company provides pharmacy benefit management and health insurance services. GuruFocus ranks Cigna's financial strength 4 out of 10 on the back of debt ratios underperforming over 66% of global competitors, suggesting high leverage. Despite this, Cigna's profitability ranks 6 out of 10, driven by a three-year revenue growth rate that outperforms over 88% of global health care plan companies, offsetting below-industry-median returns on assets.

8c611b87a09832e07c0fcb5c46a42f6b.png
8c611b87a09832e07c0fcb5c46a42f6b.png

Ken Fisher (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) sold out of Cigna during the quarter.

a78d2d78682bb6ba7d7984b1b7fb28e9.png
a78d2d78682bb6ba7d7984b1b7fb28e9.png

HCA Healthcare

Glenview sold 3,152,172 shares of HCA Healthcare, trimming the position 52.85% and the equity portfolio 4.08%. The transaction knocked HCA out of the top holding spot and into the fifth-largest holding spot. Shares averaged $130.36 during the quarter.

2f2723251b2127adbfdc11cb07244d21.png
2f2723251b2127adbfdc11cb07244d21.png

As of December 2019, the Nashville, Tennessee-based company owns and operates approximately 180 hospitals and 120 outpatient surgery centers. GuruFocus ranks HCA Healthcare's profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and operating margins that outperform over 76% of global competitors.

a72ca66eaffc8ea3775e4539f62a40ed.png
a72ca66eaffc8ea3775e4539f62a40ed.png

Hologic

Glenview sold 6,156,261 shares of Hologic, trimming the holding 61.15% and the equity portfolio 2.82%. Shares averaged $47.87 during the first quarter.

4e0bf0e0dadde7c8cfaa79a67cd8bac4.png
4e0bf0e0dadde7c8cfaa79a67cd8bac4.png

The Marlborough, Massachusetts-based company manufactures products for women's health. GuruFocus ranks Hologic's financial strength 4 out of 10 on the back of debt ratios underperforming over 81% of global competitors despite the company having a high Piotroski F-score of 7. Despite this, Hologic's net margin and return on assets outperform over 76% of global medical device and instrument companies.

f4d7821197e0ff56a83bf3c091d01bce.png
f4d7821197e0ff56a83bf3c091d01bce.png

IQVIA

Glenview sold 2,037,269 shares of IQVIA, paring the position 54.30% and the equity portfolio 2.76%. Shares averaged $143.67 during the first quarter.

ce742d893301698819878c6d2b4f8081.png
ce742d893301698819878c6d2b4f8081.png

The Danbury, Connecticut-based company represents the combination of Quintiles, a provider of outsourced late-stage clinical trials, and IMS Health, a provider of aggregated information and technology services. GuruFocus ranks IQVIA's financial strength 3 out of 10 on the back of interest coverage and debt ratios underperforming over 86% of global competitors. The website warns that IQVIA's long-term debt has increased by $3.7 billion over the past three years.

c8e474e9cca674b161bdb1c3a12c2c04.png
c8e474e9cca674b161bdb1c3a12c2c04.png

Walt Disney

Glenview sold its 2,088,178 remaining shares of Walt Disney, reducing the equity portfolio 2.65%. Shares averaged $127.19 during the first quarter.

a9161bf9a5dbbd93120968c9b42e0465.png
a9161bf9a5dbbd93120968c9b42e0465.png

GuruFocus ranks the Burbank, California-based entertainment giant's profitability 8 out of 10 on the back of a 4.5-star business predictability rank. Despite this, operating margins have declined approximately 4.7% per year on average over the past five years. Returns on assets are outperforming over 60% of global competitors.

fdd6f742faf35d7157e150e3622f1682.png
fdd6f742faf35d7157e150e3622f1682.png

See also

Glenview introduced eight new positions during the quarter with a net portfolio impact less than 4%. Top new buys Boston Scientific Corp. (BSX) and Baxter International Inc. (BAX) impacted the portfolio by 2.13% and 1.07%.

Disclosure: No positions.

Read more here:

  • Seth Klarman's 5 Largest Holdings as of the March Quarter

  • Chris Davis' Firm Slims New Oriental Education, Boosts 2 Financial Companies in 1st Quarter

  • Lee Ainslie Packs Into Ackman's Restaurant Brands in the 1st Quarter



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.