Tracking Larry Robbins’ Glenview Capital Management Portfolio – Q4 2019 Update

This article is part of a series that provides an ongoing analysis of the changes made to Larry Robbins’ 13F portfolio on a quarterly basis. It is based on Robbins’ regulatory 13F Form filed on 02/14/2020. Please visit our Tracking Larry Robbins’ Glenview Capital Management Portfolio article for an idea on his investment philosophy and our previous update for the fund’s moves during Q3 2019.

This quarter, Robbins’ 13F portfolio value increased from $9.51B to $11.42B. The number of holdings increased from 48 to 50. The top five positions are HCA Holdings, CIGNA Corp, Tenet Healthcare, ViacomCBS, and Takeda Pharmaceuticals. Together they are at ~33% of the 13F assets.

New Stakes:

ViacomCBS (VIAC): VIAC is a top-five 5.54% of the 13F portfolio position established this quarter. Glenview had 4.14M shares of CBS Corporation as of last quarter for which they received the same number of shares in the new entity ViacomCBS formed in the merger transaction with Viacom. Glenview also increased the position by ~250% during the quarter. VIAC currently trades at $24.61.

Note: Details on the original CBS position follows: A 1.76% stake was first purchased in 2013 and a large increase happened in Q4 2014 at prices between $49 and $57. The position had since wavered: 2017 saw a one-third increase at prices between $55 and $69. There was a ~3% trimming in Q1 2018 and that was followed with a ~35% reduction over the next two quarters at prices between $49 and $59.

Boeing Company (BA), Corteva (CTVA), eBay Inc. (EBAY), and Elanco Animal Health (ELAN): These are small (less than ~1% of the portfolio each) new positions established this quarter.

Facebook Inc. (FB), Microsoft Corp (MSFT), PRA Health Services (PRAH), Insperity Inc. (NSP), Nuance debt, Pacific Biosciences (PACB), and Michaels Companies (MIK): These are minutely small (less than ~0.5% of the portfolio each) stakes purchased during the quarter.

Stake Disposals:

Liberty Global (LBTYA) (LBTYK): Liberty Global was a 0.84% of the 13F portfolio position as of last quarter. The original position was from Q2 & Q3 2014 in the high-30s price range. Recent activity follows: H1 2018 saw a combined ~18% selling at prices between $26.50 and $36.70 and that was followed with a ~10% trimming in Q4 2018. Last quarter saw a two-thirds selling at prices between $24 and $28. The disposal this quarter was at prices between $20.50 and $25. The stock currently trades at $18.59.

Note: The prices quoted above are adjusted for the Liberty LiLac tracking stock distribution in June 2016.

NXP Semiconductors (NXPI): NXPI was a 1.22% of the portfolio position as of last quarter. It was first purchased in Q3 2018 at prices between $89 and $110 and built over the next two quarters at prices between $68 and $97. Q2 2019 saw a ~25% selling at prices between $88 and $108. That was followed with a ~55% selling last quarter at prices between $94 and $111. The elimination this quarter was at prices between $103 and $129. The stock is now at ~$114.

ADT Inc. (ADT), Delphi Technologies (DLPH), Livent Corp. (LTHM), Newell Brands (NWL), SS&C Technologies (SSNC), Tapestry Inc. (TPR), and Wellcare Health Plans (WCG): These minutely small (less than ~0.5% of the portfolio each) positions were disposed during the quarter.

Stake Increases:

HCA Healthcare (HCA): HCA is currently the largest position at 7.72% of the portfolio. The original stake was from 2011 when 8.8M shares were purchased at a cost-basis in the low-20s. The position has wavered. Recent activity follows: the four quarters thru Q3 2018 had seen a combined ~70% selling at prices between $75 and $140. Q1 2019 also saw a ~13% trimming while the last three quarters have seen a ~40% stake increase at prices between $112 and $150. The stock is now at $127.

Tenet Healthcare (THC): THC is top-three 6.57% portfolio stake established in 2012 at a cost-basis in the low-20s. The original position saw a ~40% increase in Q4 2013 at around $44. Last two quarters of 2015 saw a combined ~20% increase at prices between $27 and $61. The stock currently trades at $26.28. There was a ~9% stake increase last quarter at ~$20 per share. This quarter also saw a marginal increase.

Note 1: Glenview controls ~19% of the business.

Note 2: In August 2017, Glenview’s two directors resigned from THC’s board citing irreconcilable differences. In March 2018, Tenet’s board reached an agreement with Glenview whereby they agreed to vote in favor of the board’s nominees in return for byelaw amendments.

Takeda Pharma (TAK): The top-five 5.28% TAK stake came about as a result of Takeda’s acquisition of Shire plc. Glenview had a large position in Shire plc for which they received Takeda shares. They also increased the resultant stake by ~10% in Q1 2019 at prices between $16.70 and $21.50. The stock currently trades at $17.30. Last three quarters have also seen a combined ~17% increase.

Iqvia Holdings (IQV) previously Quintiles IMS: The large ~5% IQV stake was established in Q2 2016 at prices between $61 and $71 and increased by ~75% in the following quarter at prices between $65 and $81. There was a stake doubling in Q4 2016 primarily due to the merger transaction between Quintiles & IMS that closed in October. The position has since wavered. Recent activity follows: Q1 2019 saw a ~27% selling at prices between $110 and $145 and that was followed with marginal trimming next quarter. Last quarter also saw a ~7% trimming while this quarter there was a ~4% increase. The stock is now at ~$140.

Hologic (HOLX): The 4.60% HOLX stake was purchased in Q2 2018 at prices between $36.50 and $40.50 and increased by a whopping ~575% next quarter at prices between $38 and $43. Q4 2018 also saw a ~20% further increase at prices between $37.75 and $45. The stock is now at $47.12. Q1 2019 saw a ~9% increase while in the next two quarters there was a ~24% selling at prices between $43 and $52. This quarter saw a similar increase at prices between $45.50 and $53.50.

Bausch Health Group (BHC): BHC is a 4.35% of the portfolio position established in Q3 2018 at prices between $20.50 and $27.50 and built over the next two quarters at prices between $17.50 and $28.50. The stock is now at $22.13. Last quarter saw a ~42% stake increase at prices between $21 and $26. That was followed with a ~20% stake increase this quarter at prices between $19 and $32.

Walt Disney (DIS): The 2.57% DIS stake was established in Q1 2019 at prices between $106 and $115. Next quarter saw a ~160% stake increase at prices between $112 and $142. The stock currently trades at ~$118. There was a ~11% stake increase this quarter.

Avis Budget (CAR) and Nuance Communications (NUAN): These two positions saw large increases over the last two quarters. The ~2% CAR stake was increased by ~130% over the last two quarters at prices between $24 and $36.50. The stock currently trades at $32.38. NUAN is a 2.14% position that saw a similar increase over the last two quarters at prices between $14 and $18. It is now at $21.62.

Note: Glenview controls ~10% of Avis Budget.

Allergan plc (AGN), AmerisourceBergen Corp. (ABC), Flex Ltd. (FLEX), Lowe’s Companies (LOW), UnitedHealth Group (UNH), and Williams Companies (WMB): These small (less than ~2% of the portfolio each) positions were increased during the quarter.

Stake Decreases:

Cigna Corporation (CI): CI is a very long-term top-three 7.48% stake that has been in the portfolio since 2007. It is currently their largest 13F position. The stake has wavered. Recent activity follows: Q4 2018 saw a ~140% increase at prices between $178 and $225 and that was followed with a ~47% increase next quarter at prices between $160 and $200. The stock is now at $183. Q2 & Q3 2019 had seen a combined ~18% stake increase while this quarter there was a similar reduction.

McKesson Corp. (MCK): The large 4.49% MCK stake was first purchased in Q4 2016 and built up over the next two quarters at prices between $124 and $167. The position saw a ~130% increase in Q3 2017 at prices between $146 and $168 and that was followed with a ~40% increase the following quarter at prices between $135 and $163. The stock is now at ~$140. Last three quarters have seen a ~25% selling at prices between $112 and $153.

DXC Technology (DXC) previously Computer Sciences Corp: DXC is a 3.61% of the portfolio stake. The position was established in Q1 2016 at prices between $27 and $34. The four quarters thru Q3 2018 had seen a combined ~38% selling at prices between $75 and $96 while next quarter the stake was almost doubled at prices between $50 and $94. Q1 2019 also saw a ~20% stake increase at prices between $53 and $69. There was a ~8% stake increase last quarter while this quarter saw a similar reduction. The stock is now at $24.11.

Note: Computer Sciences Corporation and Hewlett Packard Enterprise (HPE) had announced a spin-merger transaction whereby HPE’s Enterprise Services business was to be spun-off and merged into CSC to form a new business DXC Technology. That transaction closed in April 2017. Terms called for CSC shareholders to receive one share of DXC for each CSC share held.

Humana Inc. (HUM): The 3.40% HUM stake was established in Q4 2018 at prices between $273 and $354 and increased by ~600% next quarter at prices between $263 and $310. There was another one-third stake increase in Q2 2019 at prices between $233 and $277. The stock currently trades at $320. Last two quarters saw a ~20% selling at prices between $253 and $371.

FMC Corporation (FMC): FMC is a 2.65% of the portfolio stake established in Q1 2015 at prices between $55 and $65 and increased by ~180% the following quarter at prices between $51.50 and $61. The position had since been increased. Recent activity follows: H1 2018 saw a ~25% reduction at prices between $73 and $98. Last three quarters have seen a two-thirds selling at prices between $71 and $102. The stock is now at ~$93. Glenview still controls 2.34% of the business.

Alphabet Inc. (GOOG) (GOOGL): GOOG is a 2.58% stake purchased in Q1 & Q2 2015 at prices between $492 and $575. The position has wavered. Recent activity follows: Q4 2018 saw a ~40% stake increase at prices between $976 and $1203 while next quarter there was a ~9% trimming. Q2 2019 saw a ~27% selling at prices between $1036 and $1288 and that was followed with similar reduction last quarter at prices between $1098 and $1250. The stock is now at $1339. This quarter saw marginal trimming.

Anthem Inc. (ANTM): ANTM is a ~2% of the portfolio position. It was established in Q4 2014 at prices between $111 and $129 and increased by just over one-third the following quarter at prices between $123 and $158. The position has since wavered. Recent activity follows: there was a one-third selling in Q4 2018 at prices between $249 and $296. Next quarter saw a ~17% stake increase while in Q2 2019 there was similar selling. The stock is now at ~$257. Last two quarters have seen a ~14% selling at prices between $235 and $311.

Fiserv Inc. (FISV): FISV­ is a ~2% of the portfolio stake established last quarter as a result of Fiserv’s acquisition of First Data Corp that closed in July. Terms called for First Data shareholders to receive 0.303 shares of FISV for each share of FDC. Glenview had 13.77M shares for which they received 4.17M shares of FISV. That position was reduced by one-third during the quarter at prices between $92 and $109. That was followed with a similar reduction this quarter at prices between $101 and $117. The stock currently trades at $109. Glenview is realizing long-term gains.

DaVita Inc. (DVA): DVA is a 1.26% portfolio position built in H1 2019 at prices between $43.50 and $59.25. It was reduced by ~40% this quarter at prices between $54 and $75. It is now at $77.62.

T-Mobile US (TMUS): TMUS is a small ~1% of the portfolio stake established in Q2 2019 at prices between $69 and $78 and it is now at ~$90. Last quarter saw a ~20% stake increase at prices between $74 and $84. There was a ~5% trimming this quarter.

Myriad Genetics (MYGN): MYGN is a 0.82% of the portfolio position purchased last quarter at prices between $22 and $47 and the stock currently trades at $17.62. This quarter saw a ~7% trimming.

Lyondellbasell Industries (LYB): LYB is now a very small 0.44% of the portfolio position. It was purchased in Q3 2018 and built over the next two quarters at prices between $78.50 and $116. Last quarter saw a ~57% selling at prices between $69 and $90. That was followed with a ~70% reduction this quarter at prices between $81.50 and $97.50. The stock currently trades at $71.46.

Thermo Fisher Scientific (TMO): The 0.59% TMO position has been in the portfolio for over a decade. The original stake was a fairly large ~7% of the portfolio position purchased in 2006 in the mid-30s price range. The stake has wavered. Recent activity follows: last year saw the stake reduced by ~80% at prices between $221 and $327. Robbins is harvesting gains. The stock is currently at ~$291.

Fidelity National Information Services (FIS) and Global Payments (GPN): These two positions were established last quarter. The FIS stake came about as a result of the acquisition of Worldpay by FIS that closed in July. Terms called for Worldpay shareholders to receive 0.9287 shares and $11 cash for each share of Worldpay held. Glenview had 848K shares of Worldpay for which they received these shares. Glenview also reduced the stake by ~25% during the quarter. This quarter saw another one-third selling at prices between $125 and $140. The stock is now at ~$140 and the stake is at 0.48% of the portfolio. The 0.61% GPN stake was purchased at prices between $154 and $175 and the stock currently trades above that range at $184. This quarter saw a ~50% selling at prices between $155 and $184.

Centene Corp (CNC), Element Solutions (ESI), Endo International plc (ENDP), Univar Inc. (UNVR), United Rentals (URI), and Universal Health Services (UHS): These very small (less than ~1% of the portfolio each) positions were reduced during the quarter.

Note: Glenview controls ~8% of Endo International plc.

Kept Steady:

Brookdale Senior Living (BKD) and Meritor Inc. (MTOR): These very small (less than ~1.5% of the portfolio each) positions were kept steady during the quarter.

Note: Glenview controls ~10% of Brookdale Senior Living and ~9% of Meritor Inc.

The spreadsheet below highlights changes to Robbins’ 13F stock holdings in Q4 2019:

Disclosure: I am/we are long AGN, EBAY, GOOGL, LBTYK, VIAC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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