Glenview Capital Management CEO Larry Robbins (Trades, Portfolio) picked up nine new stocks in the fourth quarter, his firm reported Friday.
Known for bets in health care, Robbins has 44% of the portfolio lodged in the sector. His biggest new addition was an $840 million bet on medical diagnostics and research company IQVIA Holdings Inc. (IQV, Financial). Newell Brands Inc. (NWL, Financial), Aptiv Plc (APTV, Financial), Allergan PLC (AGN, Financial) and Charter Communications Inc. (CHTR, Financial) formed the next four largest fourth-quarter buys.
Robbins founded Glenview Capital in 2001 after six years at Leon Cooperman (Trades, Portfolio)’s Omega Advisors. In 2015, he initiated a health care fund, and the investor has taken activist stakes in companies such as Tenet Healthcare (THC, Financial). Robbins controls 17.8% of the company and has tussled with the company over his six-year ownership.
On Feb. 2, Glenview wrote the company a letter announcing that it had submitted a proposal to allow shareholders to vote by written consent about the removal or replacement of shareholders, without a meeting of the majority of shareholders.
“Just as a person in worsening health may need more frequent medical attention than a check-up once every 12-18 months, a chronically unhealthy company is likely to return to health quicker and with more certainty if its owners are allowed more frequent Board oversight, and this is effectively accomplished through the ability to take Action by Written Consent,” Glenview wrote.
Robbins’ Glenview accused the company of multiple faults, including poor stock performance, retreating earnings, a deteriorating credit profile and compliance breakdowns.
Tenet responded in a statement that it was reviewing the proposal and would make a recommendation to shareholders. The vote takes place at Tenet’s annual meeting in May.
Over the past five years, Robbins’ Tenet Healthcare position lost 49% of its value as earnings declined.
The hits and misses have resulted in lumpy returns at Glenview. The Glenview Capital Partners fund returned 14.8% for the first half of 2017 after double-digit losses in 2016.
IQVIA
The size of Robbins’ IQVIA stake makes it his third largest health care position and fifth biggest overall. The company, a result of the merger between IMS Health and Quintiles, in 2016, offers technology and data analytics to the health care industry.
The company’s revenue for the fourth quarter increased 10.7% from the same quarter last year to $2.61 billion for the fourth quarter. Earnings per share totaled $1.076 billion, or $5.02 in diluted earnings per share. Adjusted for a one-time tax benefit from the Tax Cuts and Jobs Act, earnings were $300 million and $1.40 per share.
Coming up, IQVIA expects $10 billion in revenue, an increase from $9.7 billion for 2017. Projected EBITDA is in the range of $2.15 billion to $2.2 billion, growing from $2.01 billion.
Over the past year, the company’s stock price has increased 26%.
New buys
IQVIA Holdings Inc. (IQV, Financial)
Robbins purchased 8,576,935 shares of the company, giving it 4.54% portfolio weight. The stock’s fourth-quarter average share price was $102.
IQVIA Holdings Inc. has a market cap of $20.49 billion; its shares were traded around $98.38 with a P/E ratio of 16.75 and P/S ratio of 2.24. IQVIA Holdings Inc. had an annual average earnings growth of 12.0% over the past five years.
Newell Brands Inc. (NWL, Financial)
Robbins purchased 17,012,932 shares of Newell Brands, giving it 2.84% portfolio weight. The stock’s fourth-quarter average share price was $35.
Newell Brands Inc. has a market cap of $13.09 billion; its shares were traded around $26.71 with a P/E ratio of 4.77 and P/S ratio of 0.89. The trailing 12-month dividend yield of Newell Brands Inc. stocks is 3.30%. The forward dividend yield of Newell Brands Inc. stocks is 3.43%. Newell Brands Inc. had an annual average earnings growth of 6.40% over the past 10 years.
Robbins purchased 2,935,720 shares of Aptiv Plc, giving it 1.35% portfolio weight. The stock’s fourth-quarter average share price was $84.
Aptiv Plc has a market cap of $24.71 billion; its shares were traded around $92.94 with a P/E ratio of 18.38 and P/S ratio of 1.93. The trailing 12-month dividend yield of Aptiv Plc stocks is 1.16%. The forward dividend yield of Aptiv Plc stocks is 0.95%. Aptiv Plc had an annual average earnings growth of 0.40% over the past five years.
Robbins purchased 1,154,576 shares of Allergan PLC, giving it 1.02% portfolio weight. The stock’s fourth-quarter average share price was $180.
Allergan PLC has a market cap of $52.65 billion; its shares were traded around $159.40 with and P/S ratio of 3.36. The trailing 12-month dividend yield of Allergan PLC stocks is 1.75%. The forward dividend yield of Allergan PLC stocks is 1.81%.
Charter Communications Inc. (CHTR, Financial)
Robbins purchased 476,929 shares of Charter Communications, giving it 0.87% portfolio weight. The stock’s fourth-quarter average share price was $340.
Charter Communications Inc. has a market cap of $85.09 billion; its shares were traded around $356.75 with a P/E ratio of 10.45 and P/S ratio of 2.50. Charter Communications Inc. had an annual average earnings growth of 10.60% over the past five years.
