Larry Robbins‘ Glenview Capital posted a decent 3.5% return during the first quarter according to our returns methodology (actual results will vary) even though the gains do not exactly position the fund among the ranks of the best performing funds during the quarter either, like Kevin Kotler’s Broadfin Capital, which gained more than 60%. Our weighted returns formula is based on these funds’ long positions at the start of quarter, in companies that exceeded a market cap of $1 billion, which in Glenview’s case involved 74 holdings.
Robbins, whose net worth is $2.2 billion according to Forbes, founded Glenview in 2001 after working with renowned investors like Omega Advisors’ Leon Cooperman and Mr. Gleacher of Gleacher & Company. The fund’s investment strategy is based on scrupulous research that is grounded in both top down and bottom up approachs. The investment ideas are mostly inspired by identifying temporary factors which might be wearing down the valuation in the short run such as a change in the company’s management or the price of raw materials. These ideas could also involve new circumstances that provide an impetus to the corporation’s business model, such as a change in government regulations. The Glenview Offshore Opportunity Fund was up about 24.8% net of fees during 2014, while the Glenview Capital Opportunity Fund posted 25.25% gains during the same period. 35% of the fund’s holdings are comprised of stocks in the health care sector, while another 25% comprise the consumer discretionary sector. The fund’s most valuable positions at the end of 2014 were on Thermo Fisher Scientific Inc. (NYSE:TMO), Monsanto Company (NYSE:MON), Flextronics International Ltd. (NASDAQ:FLEX) and Tenet Healthcare Corp (NYSE:THC), which altogether represented over 20% of Glenview’s portfolio value.
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With 11.39 million shares valued at $1.43 billion, Thermo Fisher Scientific Inc. (NYSE:TMO) was Glenview’s top holding. The company posted returns of 7.35% during the first quarter. Two other investors who also cashed in on Thermo’s gains were Andreas Halvorsen of Viking Global and Boykin Curry of Eagle Capital Management. Marc Casper, CEO at Thermo Fisher Scientific Inc. (NYSE:TMO) sold about 20,000 in an insider sales transaction this month at an average price of $131.89. His remaining holding stands at about 398,600 shares.
Next in line is the controversial agriculture company Monsanto Company (NYSE:MON), which is focused on providing high-yield seeds to farmers. Glenview held some 9.60 million shares valued at $1.15 billion. The company however pulled down the fund’s quarterly returns as it lost about 4.99% of its stock price during the quarter. After delivering financial results for the second quarter of fiscal year 2015 that came below guidance, the company’s management still believes it is on a path to more than double its current Earnings Per Share (EPS) by 2019. Among the billionaires that we track, 6 had investments totaling $1.69 billion in Monsanto Company (NYSE:MON) at the end of 2014. David Shaw of D E Shaw was one such investor, in addition Robbins.
The holding of Flextronics International Ltd. (FLEX) in Glenview’s portfolio stood at 75.13 million shares valued at $839.96 million. The company’s 13.42% quarterly returns were the highest among the above-mentioned top picks. Cliff Asness’ AQR Capital Management and Richard S. Pzena’s Pzena Investment Management are two other investment firms that profited from Flextronics’ price hike. Just yesterday Flextronics International Ltd. (FLEX) announced that it will partner with Sunedison Inc (NYSE:SUNE) to produce solar modules in Mexico that will be used in residential, utility and commercial projects in the U.S.
Glenview’s stake in Tenet Healthcare Corp (NYSE:THC) amounted to 13.81 million shares valued at $699.90 million. The healthcare company, which is part of Robbins’ bet on Obamacare depreciated by 2.29% over the first quarter. Donald Chiboucis’ Columbus Circle Investors held some 1.28 million shares of Tenet Healthcare Corp (NYSE:THC) valued at $65.03 million, according to the latest 13F filing.