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Billionaire Robbins Turns Activist on Tenet Healthcare Corp (THC), Buffett Keeps Buying Phillips 66 (PSX), Plus 2 Other Moves

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Numerous stock market participants are looking forward to hedge funds’ 13F filings for the fourth quarter, which will reveal the early-2016 bets of the world’s brightest and most successful investors. The Form 13F filing deadline for the fourth quarter is February 15, 2016. As most hedge funds usually submit their 13Fs close to the deadline, it will take a little while longer until we can get a full handle on hedge funds’ collective fourth-quarter moves. Individual investors, whose investment strategies heavily rely on hedge funds’ quarterly filings, can also examine funds’ 13D, 13G, and Form 4 filings as part of their analysis process. Without further ado, let’s proceed with a discussion of four filings submitted with the SEC by Warren Buffett, Larry Robbins, and two other hedge fund managers.

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According to a Schedule 13D filing with the SEC, Larry Robbins’ Glenview Capital Management owns 17.89 million shares of Tenet Healthcare Corp (NYSE:THC), which account for a whopping 17.95% of the company’s outstanding common stock. Glenview has changed its filing status from passive (13G) to active (13D), but has not adjusted its ownership position in Tenet since the investment firm filed its latest 13G (filed in November) on the company. Most importantly, Glenview Capital Management and the diversified healthcare services company reached an agreement on January 18, under which the company increased the size of its Board by two members to 12 and appointed Randolph C. Simpson and Matthew J. Ripperger (two senior employees of Glenview) as new independent directors. Furthermore, the agreement stipulates that Larry Robbins’ firm may propose two additional candidates (independent of both Tenet and Glenview) for appointment as directors through the completion of the company’s 2017 annual meeting of shareholders.

Tenet Healthcare Corp (NYSE:THC)’s shares have lost 47% over the past one-year period, after embarking on a steady downtrend since mid-July. The company operates 83 hospitals, 19 short-stay surgical hospitals, more than 425 outpatient centers and nine facilities in the United Kingdom as of September 30. Tenet Healthcare reported net operating revenue of $13.61 billion for the nine months that ended September 30, up from $12.14 billion reported a year earlier. The increase was partly attributable to acquisitions, increases in outpatient volumes, and improved managed care pricing. The hedge fund sentiment towards the stock was not overly positive in the third quarter, as the number of smart money investors in our system with positions in the company dropped to 44 from 48 quarter-over-quarter. Meanwhile, analysts anticipate earnings per share of $2.16 for fiscal year 2016, which yields an attractive price-to-earnings ratio of 10.71 (this compares favorably with the average of 15.65 for the S&P 500 companies). Jacob Gottlieb’s Visium Asset Management holds a 2.31 million-share position in Tenet Healthcare Corp (NYSE:THC) as of the end of the third quarter.

Larry Robbins
Larry Robbins
Glenview Capital

Let’s head to the next two pages of this article, where we discuss the other three filings submitted with the SEC.

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