Flextronics International Ltd. (FLEX), HCA Holdings Inc (HCA), Community Health Systems (CYH): How Larry Robbins Returned 18% in The First Half of This Year

Larry Robbinsflagship fund Glenview Capital has been outperforming many of its peers, and the S&P 500 (INDEXSP:.INX) –which gained 6.05% in the first half of 2014, with his Glenview Opportunity funds having returned 10.11% in the second quarter, and 18% in the first six months of the year. Let’s take a look at some of its best performing stock positions –amongst his top picks, in order to better understand where the aforementioned growth is coming from.

When analyzing Glenview’s returns, one thing stands out: all of his top 9 equity holdings have inched over the first half of the year.

GLENVIEW CAPITAL

The fund’s largest bet (according to its latest 13F filing; for the first quarter of 2014) is placed on Thermo Fisher Scientific Inc. (NYSE:TMO), a $50 billion market cap healthcare company that operates in three segments: Analytical Technologies, Specialty Diagnostics and Laboratory Products and Services. The fund owns more than 9.5 million shares, worth more than $1.1 billion. This position comprises more than 7.5% of the fund’s total equity portfolio, so one can understand why Glenview has largely benefited from the 5.97% increase in Thermo Fisher Scientific Inc. (NYSE:TMO)’s stock price that has taken place in the first half of 2014. In addition, the stock pays a quarterly dividend of $0.15 per share.

Another fund that has been making big profits from Thermo Fisher Scientific Inc. (NYSE:TMO) is Andreas Halvorsen’s Viking Global, which last disclosed ownership of 9.66 million shares of the company.

Amongst Mr. Robbins’ top picks, another one that has been widely outperforming the S&P 500 index is Flextronics International Ltd. (NASDAQ:FLEX), a $6.5 billion market cap provider of advanced design, manufacturing and services for original equipment manufacturers (OEMs) of electronic products. The stock inched 42.47% between January and June, generating big profits for Glenview, which last declared ownership of 70.13 million shares, up from the 60.18 million disclosed by the end of the first quarter of 2014.

Other hedge funds capitalizing on Flextronics International Ltd. (NASDAQ:FLEX)’s stock price growth are Thomas E. Claugus GMT Capital, which owns 11.65 million shares, and Richard S. Pzena’s Pzena Investment Management, which holds 3.84 million shares.

Returns were also fueled by other companies, including Humana Inc (NYSE:HUM), a $20.5 billion market cap healthcare company. Humana Inc (NYSE:HUM)’s stock price rose 23.74% in the first six months of the year; needless to say, Glenview’s 5.13 million shares have generated plenty of profits for the fund.

HCA Holdings Inc (NYSE:HCA), of which the fund owns 12.84 million shares, also gained over the first semester. HCA Holdings Inc (NYSE:HCA)’s stock was up 18.17% over the period, generating big returns for Mr. Robbins’ fund, and several others, including David Tepper’s Appaloosa Management LP, which owns 5.32 million shares of HCA Holdings Inc (NYSE:HCA).

Community Health Systems (NYSE:CYH), a $5.5 billion market cap healthcare services provider boasted good returns too. Over the first six months of the year, Community Health Systems (NYSE:CYH)’s stock inched 15.53%, but still trades at 0.3 times the company’s sales –versus an industry average of 1x P/S. The fund owns almost half a billion dollars in Community Health Systems (NYSE:CYH)’s stock.

These are the returns (for the first semester) of the other companies that comprise Glenview’s top 9 picks:

- Tenet Healthcare Corp (NYSE:THC) rose 11.44%. The fund holds about $600 million in stock.

- American International Group Inc (NYSE:AIG) was up 8.07%; the fund last disclosed ownership of half a billion dollars in stock.

- Monsanto Company (NYSE:MON), the fund’s second largest equity position with 7.36 million shares –worth almost $900 million at current stock prices, inched 7.03%.

- Crown Castle International Corp. (NYSE:CCI) Glenview’s fourth largest stake, returned 1.13%.

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!