Billionaire Larry Robbins Added These Stocks to Glenview’s Portfolio in Q2

Billionaire Larry Robbins founded Glenview Capital in 2001 after having been previously employed as a trader at Leon Cooperman’s Omega Advisors. Currently, Glenview has offices in New York City and London and employs a Growth at a Reasonable Price strategy, also known as GARP. The fund focuses on companies that generate recurring revenues.

The equity value of Glenview’s portfolio totaled $14.14 billion at the end of the second quarter, according to the firm’s last 13F filing. The fund had the biggest exposure to the healthcare sector, which accounted for 57% of the total holdings and 14% of the portfolio was invested in the materials sector at the end of the second quarter. In this article, we will look at some of Glenview’s largest new positions initiated during the second quarter.

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In IMS Health Holdings Inc (NYSE:IMS), Glenview  acquired 6.76 million shares of IMS Health during the quarter, the market value of which stood at $171.41 million at the end of June. Overall, 21 funds in our database were long IMS Health at the end of the second quarter, holding $892.48 million worth of shares, amassing 10.70% of the total outstanding shares. The number of funds from our database holding shares of IMS Health at the end of the first quarter stood at 23, while the total value of their holdings amounted to $631.95 million. IMS Health recently announced that it plans to raise $1.5 billion through a debt offering. The company will issue senior notes due 2024 in two separate tranches, in U.S. dollars and Euros. IMS Health plans to use the net proceeds from the offering, along with some existing cash and additional term loans, to retire certain debt associated with the Quintiles Transnational Holdings Inc (NYSE:Q) merger.

Glenview Capital bought 7.13 million shares of Williams Companies Inc. (NYSE:WMB) during the second quarter, which were valued at $154.28 million at the end of the quarter. The number of funds long Williams Companies went up to 58 from 52 during the second quarter, while the total value of their holdings advanced to $3.63 billion from $2.27 billion worth of shares at the end of the previous quarter. Recently, Keith Meister, an activist investor and manager of Corvex Management, issued a letter sent to three new board members of Williams Companies Inc. (NYSE:WMB), in which he urged them to create a strategic review committee among themselves in order to assess the benefits of a merger with Enterprise Products Partners and other companies in the industry, among other things.

Read about Glenview Capital’s three other new positions on the next page.

In E I Du Pont De Nemours And Co (NYSE:DD) initiated a stake containing 1.82 million shares worth $118.06 million at the end of the quarter. Overall, 36 of the funds in our database amassed $3.52 billion worth of Du Pont shares at the end of June, compared to 32 funds holding $3.23 billion worth of shares a quarter earlier. Du Pont’s merger with Dow Chemical Co (NYSE:DOW) is currently facing scrutiny from regulators in Europe. The merger was announced earlier this year and has been approved by shareholders of both companies. However, antitrust regulators in Europe have opened an investigation into the proposed merger as they believe the transaction could reduce competition in crop protection, seeds and some petrochemicals.

First Data Corp (NYSE:FDC) was one of Glenview’s new holdings in the tech space as the fund held 7.25 million shares worth $80.27 million at the end of the quarter. At the end of June, 35 funds we track were long First Data, significantly higher than 17 funds at the end of the first quarter. First Data is scheduled to release its third-quarter results on October 24 and the consensus estimates include EPS of $0.35 on revenue of $1.83 billion.

Glenview bought 469,781 shares of SBA Communications Corporation (NASDAQ:SBAC) during the second quarter, the market value of which stood at $50.70 million at the end of June. The number of investors we track long SBA Communications amounted to 40 at the end of June and the total value of their holdings stood at $2.34 billion, compared to 42 funds holding $2.04 billion worth of shares at the end of the March quarter.  Last week, SunTrust Robinson Humphrey said that SBA Communications could be one of the companies that could benefit from increasing cellphone tower capital expenditure. SunTrust also noted there are a number of growth drivers coming over the next year for SBA Communications. The brokerage initiated coverage on the stock with a ‘Buy’ rating and $129 price target.

Disclosure: none