Below are the billionaire Larry Robbins’ top 5 stock picks. To see a comprehensive list click Billionaire Larry Robbins’ Top 10 Stock Picks.
5. HCA Healthcare, Inc. (NYSE: HCA)
Health care services provider HCA Healthcare, Inc. (NYSE: HCA) is the long-running stock holding of Glenview Capital Management stock portfolio. The healthcare-focused hedge fund first initiated a position in 2011. Although the firm has sold 24% of stake in the latest quarter, HCA Healthcare still accounts for 5.94% of the overall portfolio.
The hedge fund has benefited from its HCA stake. This is because HCA Healthcare shares rallied more than 200% in the past ten years.
First Eagle Investment Management recently appreciated HCA business model in the shareholders’ letter. Here is what First Eagle Investment Management stated:
“The largest for-profit acute care hospital system in the US by revenues, HCA is a high-quality company, in our view. During the quarter, the company announced plans to issue new debt for the purpose of redeeming its 2021 paper. The short tenor of this particular bond issue also appeared to help buoy it in a difficult market, as longer HCA paper was much more volatile during the period.”
4. Cigna Corporation (NYSE: CI)
The health care insurance and services provider Cigna Corporation (NYSE: CI) is the fourth largest stock holding of Glenview Capital, accounting for 6.46% of the overall portfolio. The hedge fund has slightly raised its stake in the insurance and services provider in the latest quarter. Billionaire Larry Robbins’ hedge fund first initiated a position in Cigna Corporation in 2007.
Avenir Capital, which has generated 7% growth in market value, commented on the underperformance of Cigna stock in the shareholders’ letter.
“The only material detractor for the quarter was Cigna, a U.S. healthcare stock, which declined 9.7% as the U.S. moved closer to the election and Joe Biden’s chances of winning the presidency increased, along with the possibility of the Democrats gaining control of the senate. Investors sold U.S. healthcare stocks due to increased fears of unfavourable policy change and following a well-established pattern of healthcare stocks underperforming leading up to an election and then materially outperforming after the election.”
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.”
2. Takeda Pharmaceutical Company Limited (NYSE: TAK)
Pharmaceuticals products manufacturer Takeda Pharmaceutical Company Limited (NYSE: TAK) has been in Glenview Capital’s stock portfolio since the first quarter of this year.
The hedge fund is showing confidence in the future fundamentals. It is the second-largest stock holding of Larry Robbins’ stock portfolio, accounting for 8.72% of the overall portfolio. Shares of Takeda plunged 8% in the last twelve months, extending the two-year losses to 25%.
1. Tenet Healthcare Corporation (NYSE: THC)
The diversified healthcare services company Tenet Healthcare Corporation (NYSE: THC) is the largest stock holding of billionaire Larry Robbins’ portfolio. The investment accounts for 21.39% of the overall portfolio.
The healthcare-focused hedge fund manager sold 7% of stake in the latest quarter to capitalize on share price gains. Shares of Tenet Healthcare Corporation grew more than 100% in the last six months. The company’s strategy of expanding its product portfolio through acquisitions added to share price gains. Tenet Healthcare recently announced plans to acquire a portfolio of up to 45 ambulatory surgery centers from SurgCenter Development.
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