Billionaire Larry Robbins’ Top 5 Stock Picks

3. Bausch Health Companies Inc. (NYSE: BHC)

The manufacturer of a range of pharmaceutical and medical device products Bausch Health Companies Inc. (NYSE: BHC) is the third-largest stock holding of Larry Robbins. The investment accounts for 6.76% of the overall portfolio. Shares of Bausch Health underperformed this year, with a share price loss of 33% in the past twelve months. The shares are down 82% in the past five years.

Some hedge funds believe Bausch Health stock is undervalued at the moment. Chou Associates Management is among those hedge funds. Here is what Chou stated about Bausch Health in a shareholders letter:

“In early August, Bausch Health Companies Inc. announced that it is planning to spin off its eye care business, Bausch + Lomb, into an independent publicly-traded company. This will allow the company to concentrate on its gastroenterology, aesthetics/dermatology, neurology, and international pharma business. Comparables like Cooper Companies and Alcon Inc. are currently trading between 18 and 20 times EBITDA. If Bausch + Lomb trades at similar multiples as a stand-alone company, the total value of Bausch Health using the sum-of-the-parts method, net of debt, should be worth north of $35 per share.”