Top 5 Stocks in Larry Robbins’ Portfolio

2. Tenet Healthcare Corp (NYSE:THC)

Number of Hedge Fund Holders:66
Percentage of Glenview Capital’s Portfolio:9.47%

Tenet Healthcare Corp (NYSE:THC), a diversified healthcare service company operating through three segments of hospital operations, ambulatory care, and conifer, has been among the best-performing stocks. It’s already up by more than 60%, outperforming the S&P 500, that’s up by about 15%.

The solid performance stems from the company completing several acquisitions and forming strategic partnerships that have helped scale the business operating capacity and geographical footprint. Mizuho maintained a ‘Buy’ rating on Tenet Healthcare Corp (NYSE:THC) and increased its price target to $94 on July 11.

Larry Robbins’ Glenview Capital held a significant stake in Tenet Healthcare Corp (NYSE:THC) at the end of Q1 2023. According to the 13F filings for the first quarter of 2023, the Larry Robbins stock portfolio had 7.27 million shares of Tenet Healthcare Corp (NYSE:THC), worth $431.84 million and representing 9.47% of the total holdings.

At the end of the first quarter of 2023, 66 hedge funds owned a stake in Tenet Healthcare Corp (NYSE:THC), up from 59 in the preceding quarter.

Greenlight Capital made the following comment about Tenet Healthcare Corporation (NYSE:THC) in its Q4 2022 investor letter:

“Though we believe we are in the middle stages of a bear market, we did establish a new medium-sized long position in Tenet Healthcare Corporation (NYSE:THC) during the fourth quarter.

THC is an operator of hospitals and ambulatory surgery centers (ASC). In recent years, the company has grown and transitioned its business mix towards its higher-margin ASCs. This shift has enabled the company to generate significant, and what we believe to be sustainable, cash flows.

During 2022, the company lowered its guidance due to COVID and inflationary headwinds, resulting in its shares declining by more than 50% year-to-date through late October. We believe this pullback offered an attractive opportunity to participate in the company’s transformation, as we expect its ASC growth to remain strong and its now smaller hospital portfolio to improve from both a cost and volume perspective. We acquired our shares from late December through the beginning of January for an average price of $48.61, or 8.7x 2023 consensus earnings. THC recently announced and began its plan to repurchase about 20% of the outstanding shares by the end of 2024.”