We recently compiled a list of the Billionaire Larry Robbins’ Long-Term Stock Picks. In this article, we are going to take a look at where McKesson Corporation (NYSE:MCK) stands against Larry Robbins’ other long-term stock picks.
Larry Robbins is an American hedge fund manager, philanthropist, and the founder, CEO, and portfolio manager of Glenview Capital, a leading New York-based investment firm. Known for his sharp analytical skills and a focus on the healthcare sector, Robbins has built a reputation as one of the most influential figures in the hedge fund industry. He was born in 1983 and grew up in a middle-class family in New Jersey. He displayed a keen interest in mathematics and analytics from an early age, which later guided his career in finance. Robbins graduated from the Wharton School of the University of Pennsylvania with a degree in economics. While at Wharton, he developed a deep understanding of market structures, investment strategies, and corporate behavior, which became the foundation of his success in the hedge fund world.
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Before founding Glenview Capital, Robbins worked as a portfolio manager at Omega Advisors, a prominent hedge fund founded by Leon Cooperman. In 2000, Larry Robbins founded Glenview Capital, which quickly rose to prominence as one of the most successful hedge funds in the world. The firm specializes in fundamental, research-driven investing and focuses on sectors such as healthcare, technology, and consumer goods. Glenview’s annualized returns have been strong, with some years delivering returns above 20%. As of the end of the third quarter of 2024, Glenview Capital manages approximately $5.7 billion in 13F securities. Robbins is particularly known for his expertise in healthcare investing, where he has consistently identified undervalued opportunities.
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For this article, we selected stocks by combing through the 13F portfolio of Glenview Capital at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy.
McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 57
Glenview Capital’s Stake: $131.9 million
McKesson Corporation (NYSE:MCK) provides healthcare services. The following key aspects make this company a standout investment. To start with, as per the report for the fourth quarter of 2024, consolidated revenues of $76.4 billion increased by 11%, reflecting strong overall sales performance. Also, earnings per diluted share from continuing operations of $6.02 increased by $0.31, showing improved profitability and financial strength, which is positive for investors. Secondly, McKesson’s dedicated business unit, InspiroGene, partnered with Vertex Pharmaceuticals to expand distribution options for CASGEVY, the first CRISPR-based gene-editing therapy approved by the US Food and Drug Administration. This partnership demonstrates a commitment to advancing cell and gene therapies for patients living with debilitating diseases.
Overall MCK ranks 6th on our list of Larry Robbins’ long-term stock picks. While we acknowledge the potential of MCK as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than MCK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
