Another pick in the healthcare sector space, sitting at No. 4 in the fund’s equity portfolio, is Health Management Associates Inc (NYSE:HMA). Compared to the other stocks in this “fab five,” so to speak, Health Management has a smaller market cap below $3 billion, though it has had a similarly impressive 2013, up more than 20% year-to-date. The company owns and operates general acute care hospitals and other health care facilities with a rural focus, and it recently reported that Q4 net revenue grew to $1.48 billion, an increase of over 6% from the same period one year earlier. Robbins owns over 35 million shares of the Health Management, and it appears that for the time being, he’s been right as rain about this investment as well.
Lastly, we have Flextronics International Ltd. (NASDAQ:FLEX), rounding out this top five. Probably unbeknownst to those who aren’t Flextronics investors, the company is a technology supply chain player providing design, logistics and manufacturing services to a variety of business segments including the industrial, aerospace and defense sectors. The company recently reported $103 million in restructuring charges for its latest fiscal Q3, and has shared that more charges are likely to come, at least on a quarterly basis. This, in layman’s terms, led to an EPS to slide of 67% year-over-year. Yes, shares of Flextronics are essentially flat over the past six months, but there’s obvious value here at a mere 0.18 times sales and a price-to-cash multiple below 3.0.
In short, it’s always important to follow the smart money, both from an individual and aggregate standpoint. With some of the picks that grace Robbins and Glenview Capital’s equity portfolio, it’s easy to see why retail investors should pay attention to this space.
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