Glenview Capital Management’s Top Stock Picks

Larry Robbins’ Glenview Capital Management returned 82.7% in 2009 after losing 50% in 2008. Glenview’s overall return between 2001 and 2010 was 301% despite the poor performance in 2008. Glenview Capital also returned 15.7% in 2010. Previously, Robbins was a stock trader at Leon Cooperman’s Omega Advisors.

Glenview sold 18 stocks during the first quarter. These 18 stocks lost an average of 6% since the end of the first quarter. The worst performer was Computer Science Corp (CSC), which lost 25%.  Louisiana Pacific Corp (LPX) lost 24%, Staples (SPLS) had a loss of 22% and American International Group (AIG) declined 21%. Robbins’ sales were extremely timely and he avoided significant losses.

Glenview also reduced its holdings in several stocks. Davita Inc (DVA) was reduced by 57% and the stock returned 0.4%. Corning Inc. (GLW) was reduced by 50% and this was very timely because the stock lost 20% since the end of the first quarter. The company made two major purchases above $100 million. The larger one was Pfizer (PFE) with a $198 Million investment. Glenview also initiated a $119 Million position in Time Warner. The stock gained 8% since the end of March.

Robbins’ largest position was McKesson (MCK) with $470 Million invested at the end of March. The stock returned 4%, beating the S&P 500 index by more than 3 percentage points.  Lee Ainslie’e Maverick and Jeffrey Altman’s Owl Creek are among the hedge funds that are bullish about MCK (See Lee Ainslie’s top stock picks here).

Larry Robbins also had $470 Million in Life Technologies Corp (LIFE) at the end of March. Unfortunately, this stock lost 5% since then. Lee Ainslie’s Maverick and Joe Healey’s Healthcor have large positions in LIFE too.

Robbins’ best performing position was Expedia Inc, returning 32% since the end of March. Robbins had the largest position in Expedia among the 300+ hedge funds we’re tracking. Mason Hawkins also had a large position in Expedia (Check out Mason Hawkins’ top stock picks).

Robbins’ worst performing stock pick was Flextronics. The stock lost 18% since the end of March. However, Robbins saw this as an opportunity to invest in FLEX at a bigger discount. Recently he spent an additional $80 Million on FLEX (See the details of this transaction).

We like Larry Robbins and his stock picks and expect them to outperform the market in the long-term. We will keep you updated about his new stock picks and performance.