Glenview’s Larry Robbins Betting Big on Tenet Healthcare

September 19, 2012 James Heinsman Hedge Fund News

Larry Robbins of Glenview Fund

Glenview Capital was founded by Larry Robbins in 2001, and employs various equity strategies, both long and short, with a special emphasis on using the growth at reasonable price (GARP) model.  Robbins likes to become a large shareholder in the companies that he feels are the best, and therefore has fewer than 50 stock holdings in Glenview’s 13F portfolio, which is estimated to have an AUM (assets under management) valued at $7 billion. This strategy has so far served Robbins well. He has had a return of over 300 percent between January 2001 and December 2010.

Next on the shopping list for Glenview is Tenet Healthcare Corporation. By the end of the second quarter of 2012 Glenview held about 41.3 million shares in Tenet, valued at about $216.4 million. Just yesterday Glenview reported in a Form 3 filing with the SEC after the closing bell, that after its latest purchase of Tenet’s stock Glenview owns 49.8 million shares, valued at about $300 million, and representing an excess of 10 percent of the company, perhaps as much as 12.7 percent of common stock outstanding.

After Robbins latest purchase of Tenet his Glenview fund holds more shares of Tenet than any of his colleagues, even combined. The other 19 hedge funds that have shares in Tenet combine to a value of only $90 million, less than one-third of what Robbins has at stake. Due to Robbins great past performances, Tenet’s potential for growth, and its reasonable price, this stock is worth a second look by individual investors.

Glenview Fund, Larry Robbins, Tenet Healthcare,

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