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Robbins’ HMA Stake Just Keeps Getting Bigger

January 11, 2013 | About:
Former trader at Leon Cooperman’s Omega Advisors, Larry Robbins, with his hedge fund, Glenview Capital, has reported its eleventh installment of increases to his stake in Health Management Associates (HMA), since purchasing the stock in 2011.

Filed with the SEC yesterday, Robbins’ latest add maximizes his holding by 6.74 percent, according to GuruFocus Real Time Picks.

Last December alone, Robbins made a total of four increases only days apart from each other. The one made on Dec. 19 placed the manager at 13.11 percent owner of HMA’s outstanding shares.

So what has gotten Robbins all excited about HMA?

For one, the stock has gained 69.05 percent in market value in the course of five years. Since Robbins bought the stock in 2011, he was certainly along for the ride, as the stock raked in 52.56 percent in 2012.

1357927029334.pngHMA data by GuruFocus.com

Last month, the HMA thrived on news that TV show 60 Minutes reported inaccurate information about the company, proving wrong the claims that the healthcare provider pressured patients into pursuing unneeded treatments to hoard profits. (See HMA Stock Rises After False 60 Minutes Report)

One of the company’s two Good Signs on GuruFocus reveals that the company’s per share revenue is consistent in growth. Annually for 10 years, its revenue felt a growth rate of 10.1 percent. Its EBITDA felt a 26.4 percent growth rate in 10 years, while its free cash flow growth saw a 19.4 percent growth rate within the same time, despite declining by 32.7 percent in the last 12 months. (10-Year Financials)



Soon after Robbins purchased the stock in the first quarter of 2011, insiders followed by buying more shares of the company. This should speak for itself in terms of officers’ growing confidence in HMA.

Another Guru who has embarked in bullish investments in healthcare is world-renowned Warren Buffett, and his concentrated bets on DaVita Healthcare Partners (DVA). (See contrasting healthcare stocks using the GuruFocus Compare feature)

Market capitalized at $2.48 billion, Health Management Associates is a large chain of local health care provider,operating 70 hospitals in non-urban communities in the United States. Today it trades at $9.05, down 1.95 percent Friday afternoon.

Robbins’ portfolio is 42.2 percent health care stocks. His top holdings are Tenet Healthcare Corp. (THC), American International Group (AIG), McKesson Inc. (MCK), HCA Holdings Inc. (HCA) and Cigna Corp. (CI).

To view more of Glenview Capital’s latest trades, go to Stock Picks. Also see its undervalued stocks, high-yield companies and top growth stocks.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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