Billionaire Larry Robbins Confidently Piles Into CBS, Anthem, As Merger Battles Continue

Larry Robbins is a billionaire investor and businessman who founded the New York-based hedge fund Glenview Capital in 2000. Mr. Robbins worked in Leon Cooperman’s Omega Advisors for 6 years before launching his own firm. Glenview’s 13F portfolio has a total worth of over $13.98 billion. Robbins’ fund declined 10.9% in the first half of 2016, and 18% last year. Let’s take a closer look at Glenview’s biggest moves of the third quarter.

CBS Corporation (NYSE:CBS)

– Shares Owned by Glenview Capital (as of September 30): 13.50 million

– Value of Glenview Capital’s Holding (as of September 30): $739.03 million

Glenview Capital boosted its stake in CBS Corporation (NYSE:CBS) by a massive 84% in the third quarter, buying over 6.20 million shares of the company. The updated stake has a net worth of $739.03 million. Recently, Reuters claimed that the much talked about merger of CBS and Viacom had hit a stumbling block due to matters involving board members and name of the new company. Despite the Reuters report, many bulls believe that the merger will go through, as media magnate Sumner Redstone and his daughter Shari Redstone, who together have a majority of the voting shares of both companies, are for a merger.  CBS recently crushed analysts’ estimates with its third quarter results, reporting adjusted earnings of $1.05 per share and $3.40 billion revenue. Analysts had projected EPS of $0.98 and $3.34 billion revenue. A total of 59 hedge funds tracked by Insider Monkey were bullish on CBS Corporation (NYSE:CBS) in the third quarter.

Anthem Inc (NYSE:ANTM)

– Shares Owned by Glenview Capital (as of September 30): 5.597 million

– Value of Glenview Capital’s Holding (as of September 30): $701.39 million

Glenview loaded up on Anthem Inc (NYSE:ANTM) during the third quarter, upping its stake in the Indiana-based health insurance company by a whopping 41%, ending the period with 5.597 million Anthem shares which have a total worth of $701.39 million. The Federal Court for the District of Columbia recently launched a hearing of the $48 billion Anthem- Cigna merger, which was challenged by the Justice Department. Anthem’s merger with Cigna would create an industry behemoth, which would cover about 17% of the US population. Jean-Marie Eveillard’s First Eagle Investment Management owned 2.82 million shares of Anthem Inc (NYSE:ANTM) as of the end of the third quarter.

 

AbbVie Inc (NYSE:ABBV)

– Shares Owned by Glenview Capital (as of September 30): 6.03 million

– Value of Glenview Capital’s Holding (as of September 30): $380.32 million

Glenview Capital sold more than half of its stake in AbbVie Inc (NYSE:ABBV) in the third quarter, unloading over 6.42 million shares of the Illinois-based pharmaceutical company. The firm now owns $380.32 million stake in the company according to the most up-to-date 13F data. AbbVie recently said its Hepatitis C drug achieved 97.5% sustained viral response after eight weeks of treatment during a study. AbbVie (NYSE: ABBV) reported EPS of $1.21 on $6.43 billion revenue in the third quarter, versus the consensus estimate of $1.20 EPS and $6.56 billion revenue.  57 funds tracked by Insider Monkey were long AbbVie Inc (NYSE:ABBV) at the end of the second quarter, down from 65 funds a quarter earlier.

Hertz Global Holdings, Inc (NYSE:HTZ)

– Shares Owned by Glenview Capital (as of September 30): 6.60 million

– Value of Glenview Capital’s Holding (as of September 30): $265.17 million

Glenview Capital sold 40% of its stake in Hertz Global Holdings, Inc (NYSE:HTZ) in the third quarter, moving into the fourth quarter with 6.60 million shares of the company which had a market value of $256.17 million. Hertz Global’s stock has lost some 44% year-to-date. The car rental company posted third quarter EPS of $1.58 on $2.5 billion revenue, worse than the estimates of $2.75 EPS and $2.6 billion revenue. The company expects full year 2016 EPS to come in between $0.51-$0.88, much lower than the consensus of $2.94. In earnings call, CEO John Tague said that the vehicle depreciation rate review, lower than expected rental volume, higher net operating and administrative expenses dented the company’s performance in the quarter. At the end of the June quarter, 37 funds had owned stakes in Hertz Global Holdings, Inc (NYSE:HTZ).

ManpowerGroup Inc. (NYSE:MAN)

– Shares Owned by Glenview Capital (as of September 30): 2.87 million

– Value of Glenview Capital’s Holding (as of September 30):   $207.39 million

Glenview Capital unloaded 14% of ManpowerGroup Inc. (NYSE:MAN) shares from its portfolio in the third quarter, concluding the period with 2.87 million shares of the company. The aggregate market value of the new position is $207.39 million. The stock is up just over 3.6% so far this year. The Wisconsin-based human resource company topped analysts’ forecasts for its third quarter earnings with EPS of $1.87 and $5.1 billion revenue, versus the estimated EPS of $1.71 and $4.99 billion revenue. For the fourth quarter, ManpowerGroup expects to earn $1.65-$1.73 a share, versus the consensus of $1.64. Cliff Asness’ AQR Capital Management reported owning 1.36 million shares of ManpowerGroup Inc. (NYSE:MAN) at the end of the third quarter.

 

 

Disclosure: None