Larry Robbins’ Glenview Capital Management focuses on delivering attractive absolute returns through deep fundamental research and individual security selection. In this series, we’ll discuss some of the notable positions traded during the fourth quarter as disclosed by the fund’s 13F. The size of the portfolio was increased from $11.8 billion in 3Q 2013 to $13.9 billion last quarter. New positions include Aetna, Inc. (AET), Comcast Corporation (CMCSA), and PHH Corporation (PHH). The fund exited Apple Inc. (AAPL) and Hospira, Inc. (HSP), and upped its stake in Monsanto (MON). According to Bloomberg Markets Magazine February edition, of the 16 hedge funds that beat the S&P, Glenview Capital Opportunity Fund gained 84.2% over that same period. The report attributed the fund’s performance to investments in stocks in the health care sector that benefited from the Affordable Care Act, or “Obamacare.” Some of the fund’s largest investments include Thermo Fisher Scientific Inc. (TMO), HCA Holdings, Inc. (HCA), Tenet Healthcare Corporation (THC), and Community Health Systems, Inc. (CYH). Robbins went activist on Health Management Associates (HMA) last year and initiated a campaign to replace HMA’s management and board. In a press release last year, Glenview stated that its investment in hospitals, which totals approximately $2.0 billion across five major U.S. hospital chains, reflects its affinity for the long-term growth and stability of the business, its recognition of the growth opportunities available through implementing expanded insurance coverage, its belief in the structural competitive advantages of for-profit hospital chains, and its excitement about the opportunities to reinvest in the industry’s strong cash flows and growing debt capacity as profitability builds through time.
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