Glenview Capital is Up 11% Betting on Flextronics International Ltd. (FLEX) & Humana Inc (HUM)

S0 far, 2014 has not been a very good year for hedge funds, in general. According to CNBC, the average fund was up only 2% through May, while the S&P 500 (INDEXSP:.INX) was up double that. Although June figures are not yet out, “anecdotal evidence suggests they are still lagging the market” (CNBC). There are, however, a few exceptions. For instance, Glenview Capital, run by Larry Robbins, is up about 11%, year-to-date, thru June 3. Its returns were mainly fueled by its healthcare picks, especially Humana Inc (NYSE:HUM).

GLENVIEW CAPITAL

Another stock that has gained substantially is Flextronics International Ltd. (NASDAQ:FLEX), which is up almost 42%, year-to-date, and 21% since the end of the first quarter of 2014. This $6.5 billion market cap provider of advanced design, manufacturing and services -for original equipment manufacturers (OEMs) of electronic products, was Glenview’s seventh most valuable holding by the end of Q1. However, the fund continued to increase its stake in Flextronics International Ltd. (NASDAQ:FLEX) over Q2, and last declared ownership of 70.13 million shares, up from the 60.18 million disclosed by the end of the first quarter of 2014. This position is worth almost $775 million at current stock prices.

Other hedge funds betting on Flextronics International Ltd. (NASDAQ:FLEX) are Thomas E. Claugus’ GMT Capital, with 11.657 million shares, and Richard S. Pzena’s Pzena Investment Management, with 3.84 million shares, up 32% over Q1.

Humana Inc (NYSE:HUM), a $19.9 billion market cap healthcare company, also inched considerably; the stock is up about 24%, year-to-date, and 13.5% since March 31. Glenview last declared holding 5.13 million shares of the company, worth about $658 million at current market values, up from $578.5 million by the time the latest 13F was filed at the SEC. The fund had increased its stake in Humana Inc (NYSE:HUM) by 54% over the quarter, standing as the largest hedge fund shareholder –amongst those we keep track of, same as it is in Flextronics International Ltd. (NASDAQ:FLEX).

Trailing Glenview, we can find William B. Gray’s Orbis Investment Management, which owns 3.386 million shares of the healthcare company, and David Stemerman’s Conatus Capital Management, with 1.43 million shares.

Larger than both these positions is the one that Glenview holds at Thermo Fisher Scientific Inc. (NYSE:TMO), a $47.7 billion market cap company that offers analytical instruments, laboratory equipment, software, services, consumables, reagents, chemicals, and supplies to pharmaceutical and biotech companies, hospitals and clinical diagnostic labs. Over Q1, Mr. Robbins upped its exposure to the company by 12%, and now owns more than 9.56 million shares. Although Thermo Fisher Scientific Inc. (NYSE:TMO)’s stock price is up less than 1% since the end of the first quarter, this is still the fund’s most valuable position, worth about $1.14 billion.

Other major funds with big stakes on Thermo Fisher Scientific Inc. (NYSE:TMO) are Andreas Halvorsen’s Viking Global, with 9.66 million shares, and Boykin Curry’s Eagle Capital Management, which owns 5.52 million shares.

Mr. Robbins’ second largest bet is placed on Monsanto Company (NYSE:MON), a $65.7 billion market cap agricultural products provider. Over Q1, Glenview increased its stake in Monsanto Company (NYSE:MON) by 48%, to 7.366 million shares, which are worth about $923 million at current stock prices –after escalating 11.5% since the end of the first quarter.

Once again, Glenview is the largest hedge fund investor at Monsanto Company (NYSE:MON), trailed by Stephen Mandel’s Lone Pine Capital, which holds 5.767 million shares of the company.

The last company in this list is HCA Holdings Inc (NYSE:HCA), a health care services company with a market cap of roughly $24.7 billion. Just like the other stocks in this list, the price is up since the beginning of 2014. HCA Holdings Inc (NYSE:HCA) has returned 16.5%, year-to-date, and 8.6% since the end of the first quarter. The fund’s 12.84 million shares are worth approximately $713 million at the current stock price, and make Glenview –yet again- the biggest hedge fund stockholder.

In addition to Mr. Robbins, David Tepper’s Appaloosa Management LP has increased its stake in HCA Holdings Inc (NYSE:HCA) over the last reported quarter, and now owns 5.32 million shares.

Disclosure: Javier Hasse holds no position in any stocks mentioned

 

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