Billionaire Larry Robbins‘ famed hedge fund Glenview Capital recently has submitted its 13F filing with SEC for the reporting period ended June 30, revealing a US equity portfolio worth $14.14 billion. The New York-based fund currently manages assets worth over $20 billion and was in the news earlier this year when, after a hiatus of more than two years, it again started taking fresh investments for its flagship Glenview Opportunity Fund.
Glenview’s latest 13F filing showed that the fund’s equity portfolio had a quarterly turnover of nearly 47% during the second quarter and its top-10 holdings amassed 58.6% of the value at the end of June. In the last few quarters, the fund has been extremely bullish on the healthcare sector and that sentiment remained intact as Glenview was entering the third quarter with stocks from the healthcare sector accounting for 58% of its portfolio. Considering the conviction Glenview has on the healthcare sector, in this post, we will take a look at the five biggest moves the fund made in that space during the second quarter.
At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).
#5 McKesson Corporation (NYSE:MCK)
During the second quarter, Glenview Capital sold its entire stake in McKesson Corporation (NYSE:MCK), which was its 27th largest holding a quarter earlier. McKesson Corporation (NYSE:MCK)’s stock has declined considerably since reaching its lifetime high above the $240 mark last year. However, it is currently trading down by only 7.5% year-to-date. The company pays a quarterly dividend of $0.28 per share, which translates into an annual dividend yield of 0.61%. On July 27, McKesson Corporation reported its results for the fiscal 2017 first quarter, declaring EPS of $3.50 on revenue of $49.73 billion versus analysts’ expectation of EPS of $3.33 on revenue of $50.32 billion. Earlier this month, analysts at Mizuho reiterated their ‘Neutral’ rating on the stock, but boosted their price target on it to $197 from $174. During the second quarter, the numbers of funds tracked by Insider Monkey long McKesson Corporation remained constant at 66, but the aggregate value of their holdings in it shot up by $290 million to $2.20 billion. Eli Cohen‘s Crescent Park Management was one of the hedge funds that upped its stake in the company during that time, by 19% to 145,068 shares.