Larry Robbins (Trades, Portfolio)'s firm has revealed a new buy into Longview Acquisition Corp. II (LGV.U, Financial) according to GuruFocus' Real-Time Picks, a Premium feature.
Founded in 2000, Glenview Capital Management operates as a privately held investment firm. It is focused on delivering attractive absolute returns through an intense focus on deep fundamental research and individual security selection. The firm's investments are primarily focused on the U.S., with a smaller amount of exposure in Western Europe.
On March 23, the firm purchased 22.67 million shares to establish the new holding within the portfolio. On the day of the purchase, the shares traded at an average price of $10.03 per share. Overall, the purchase had a 4.96% impact on the portfolio and GuruFocus estimates the total estimated gain of 1.69%.
Longview Acquisition is a special purpose acquisition company sponsored by Glenview Capital Management. It was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The company has a particular emphasis on the health care sector and intends to focus on private businesses whose management can work with Longview to create value for shareholders.
On April 5, the stock was trading at $10.10 per share with no market cap listed. The stock debuted in March of this year and has fluctuated around the $10 mark.
Longview II raised $600 million in its initial public offering before trading commenced. Robbins is the chairman of the company and his firm is currently the only guru shareholder listed.
Portfolio overview
At the end of the fourth quarter, Glenview's portfolio contained 56 stocks, with 11 new holdings. It was valued at $4.36 billion and has seen a turnover rate of 15%. The top holdings are Tenet Healthcare Corp. (THC, Financial), Bausch Health Companies Inc. (BHC, Financial), Takeda Pharmaceutical Co. Ltd. (TAK, Financial), Cigna Corp. (CI, Financial) and DXC Technology Co. (DXC, Financial).
By weight, the top represented sectors are health care (69.57%), technology (12.08%) and basic materials (5.01%).
Disclosure: Author owns no stocks mentioned.
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