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Larry Robbins' Top 5 Trades of the 3rd Quarter

Glenview Capital Management releases quarterly portfolio

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Nov 29, 2021
Summary
  • Firm’s top trade is a new holding in Willis Towers Watson.
  • Firm also boosts positions in Uber and Baxter.
  • Firm exits Walgreens stake and trims holding in Tenet Healthcare.
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Glenview Capital Management, the firm founded by

Larry Robbins (Trades, Portfolio), disclosed in November that its top five trades during the third quarter included a new holding in Willis Towers Watson PLC (WLTW, Financial), additions to its holdings in Uber Technologies Inc. (UBER, Financial) and Baxter International Inc. (BAX, Financial), the closure of its stake in Walgreens Boots Alliance Inc. (WBA, Financial) and a reduction to its holding in Tenet Healthcare Corp. (THC, Financial).

The New York-based firm manages two funds: Glenview Funds and Glenview Opportunity Funds. The firm seeks long-term capital appreciation through an intense focus on deep fundamental research and individual stock security selection.

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As of Sept. 30, the firm’s $5.46 billion equity portfolio contains 59 stocks, with six new positions and a turnover ratio of 13%. The health care sector occupies 61.07% of the equity portfolio, followed by a 9.5% weight in technology and a 7.3% weight in industrials.

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Willis Towers Watson

Glenview purchased 832,798 shares of Willis Towers Watson (

WLTW, Financial), giving the position 3.55% equity portfolio weight.

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Shares averaged $222.83 during the third quarter; the stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.04.

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GuruFocus ranks the U.K.-based insurance brokerage company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 9 and an operating margin that has increased approximately 5.6% per year on average over the past five years and outperforms more than 90% of global competitors.

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Other gurus with holdings in Willis Towers Watson include

First Eagle Investment (Trades, Portfolio) and Andreas Halvorsen (Trades, Portfolio)’s Viking Global.

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Uber

The firm added 1,972,091 shares of Uber (

UBER, Financial), boosting the position by 428.16% and its equity portfolio by 1.62%.

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Shares of Uber averaged $43.76 during the third quarter; the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.79.

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GuruFocus ranks the San Francisco-based rideshare and food delivery company’s financial strength 4 out of 10 on several warning signs, which include a low Piotroski F-score of 3, a weak Altman Z-score of 1.38 and a debt-to-equity ratio that underperforms more than 80% of global competitors.

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Other gurus with holdings in Uber include

Chase Coleman (Trades, Portfolio)’s Tiger Global Management and Spiros Segalas (Trades, Portfolio)’ Harbor Capital Appreciation Fund.

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Baxter

The firm added 998,335 shares of Baxter (

BAX, Financial), boosting the position by 85.37% and its equity portfolio by 1.47%.

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Shares of Baxter averaged $79.12 during the third quarter; the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.83.

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GuruFocus ranks the Deerfield, Illinois-based medical device company’s profitability 7 out of 10 on several positive investing signs, which include profit margins and returns that outperform more than 65% of global competitors.

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Walgreens

Glenview sold all 2,297,540 shares of Walgreens (

WBA, Financial), trimming 2.03% of its equity portfolio.

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Shares of Walgreens averaged $48.28 during the third quarter; the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.83.

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GuruFocus ranks the Deerfield, Illinois-based retail pharmacy chain’s profitability 7 out of 10 on the heels of a high Piotroski F-score of 7 despite profit margins and three-year earnings growth rates underperforming more than 60% of global competitors.

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Tenet Healthcare

The firm sold 1,992,579 shares of Tenet Healthcare (

THC, Financial), trimming 18.72% of the holding and 2.24% of its equity portfolio.

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Shares of Tenet averaged $70.97 during the third quarter; the stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 2.46.

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GuruFocus ranks the Dallas-based health care provider’s profitability 5 out of 10 on the back of three-year revenue growth rates underperforming more than 78% of global competitors despite profit margins and returns outperforming over 65% of global health care companies.

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