Glenview Nears 6% of Technical Services Company URS

Page 1 of 2

Glenview Capital, a hedge fund managed by Larry Robbins, owned 4.6 million shares of URS Corp (NYSE:URS), a $3.5 billion market cap company providing engineering and technical services, according to a recent filing with the SEC. We track quarterly 13F filings from hedge funds such as Glenview and other notable investors; while we primarily work on developing investment strategies based on the included information (for example, we have found that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year), our database also allows us to see what Robbins has owned over time. It turns out that at the end of December the fund had owned 3.7 million shares (see more stocks Glenview owned) so the shares they have added in the last two months have built on a large position. Glenview now has 5.9% of URS’s total shares outstanding. Robbins had previously worked at billionaire Leon Cooperman’s Omega Advisors.

GLENVIEW CAPITAL

In the fourth quarter of 2012, URS Corp experienced a 24% increase in revenue versus a year earlier. If we strip out a goodwill impairment and restructuring costs from Q4 2011, then operating income grew by 17% so operating margins appear to be fine. However, higher interest expenses shaved off about two-third of that growth when converting operating to pretax income. For the year as a whole, pretax income increased by 5%. While we’d prefer to see more of the sales growth contributing to the bottom line, we suppose that it could be positive that operating income is doing well; further increases in sales might not require higher interest expenses, and so might directly increase net income.

The stock trades at 11 times trailing earnings, which represents value levels considering that earnings are actually growing. We would note that URS Corp does generate some business from military operations, including weapons refurbishment and military logistics, so it is possible that the company will be impacted by reductions in U.S. military spending. Analyst consensus for 2014 implies a forward P/E of 9, so the sell-side apparently expects continued earnings growth over the next two years.

Billionaire David Shaw’s D.E. Shaw owned about 930,000 shares of the stock at the end of the fourth quarter of 2012, though this was down 30% from three months earlier (find D.E. Shaw’s favorite stocks). AQR Capital Management, managed by Cliff Asness, was also selling shares and began January with about 480,000 shares of URS in its portfolio (check out Asness’s stock picks). These two hedge funds, along with Glenview, made up three of the five largest holders of the stock in our database of 13F filings.

Page 1 of 2
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

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

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!