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Larry Robbins' Firm Doubles NewHold Investment Position

SPAC holding grows as merger completion draws near

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Graham Griffin
Jun 07, 2021

Summary

  • Firm boosts black check holding as merger approaches finalization
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Larry Robbins (Trades, Portfolio)’s Glenview Capital Management has revealed an addition to its NewHold Investment Corp. (NHIC, Financial) holding 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 May 25, the firm boosted its NewHold (

NHIC, Financial) position with the addition of 564,862 shares. The new shares grew the holding by 102.7% and marked the first change to the holding since it was acquired in the first quarter of this year. On the day of the transaction, the shares traded at an average price of $9.98 per share. Overall, the change had a 0.10% impact on the equity portfolio and GuruFocus estimates the total loss of the holding at 1.50%.

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NewHold is a special purpose acquisition company that targets industrial technology companies. It seeks companies that are deploying established technologies in new ways that will transform the industry that those companies are operating in. The overall intention is to accelerate the growth of these companies through a public listing.

As of March 8, NewHold announced a definitive merger agreement with Evolv Technology that will result in Evolv Technology becoming a publicly traded company. The deal is expected to close sometime during the second quarter of 2021 and have a post-transaction total enterprise value of approximately $1.25 billion alongside a total equity value of approximately $1.7 billion.

“Evolv Technology presents a preeminent opportunity to build the world’s most important enterprise in physical security, expanding the boundaries through AI and analytics,” Kevin Charlton, CEO of NewHold, said. “This transaction will provide Peter and the Evolv team with the capital to continue to develop the leading technologies that will make people safer and make their lives more convenient.”

NewHold’s stock was trading at $10.01 per share with a market cap of $215.63 million on June 7. There is not currently enough data for a GF Value Line or Peter Lynch chart to be displayed. The SPAC’s share price spiked to $10.90 at the beginning of 2021, but settled to around $10 per share by the end of March upon announcement of the planned merger.

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Robbins’ firm is currently the top shareholder with 5.17% of shares outstanding. Other top shareholders include TIG Advisors LLC (Trades, Portfolio), Marshall Wace LLP (Trades, Portfolio) and Radcliffe Capital Management L.P. (Trades, Portfolio).

Portfolio overview

Glenview’s portfolio contained 63 stocks, with 19 new holdings at the end of the first quarter of 2021. It was valued at $5.90 billion and has seen a turnover of 30%. Top holdings include Tenet Healthcare Corp. (

THC, Financial), Bausch Health Companies Inc. (BHC, Financial), Cigna Corp. (CI, Financial), McKesson Corp. (MCK, Financial) and DXC Technology Co. (DXC, Financial).

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By weight, the top three represented sectors are health care (67.02%), technology (12.42%) and communication services (5.13%).

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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