Glenview Capital Management, founded in 2000 by Larry Robbins (Trades, Portfolio), is a privately held investment management firm. In its 14th year of operation, Glenview manages approximately $7.4B of assets split between two products: the Glenview Funds (long/short) and the Glenview Opportunity Funds (concentrated, opportunistic). Since inception, the compounded annualized rates of return for the Glenview and GO Funds are approximately 15% and 25%, respectively (through January 2014). Glenview is focused on delivering attractive absolute returns through an intense focus on deep fundamental research and individual security selection. Their investments are primarily focused on the US, with a smaller amount of exposure in Western Europe.
The portfolio is composed of 74 stocks with a total value of $19,979 Mil. According to GuruFocus Real Time Picks, the investor increased his stake inBrookdale Senior Living Inc. (BKD) by 32.38%, reaching a total of 11,591,430 owned shares (2.22% of his portfolio or 6.32% of BKD’s Outstanding Shares). Mr. Robbins has been buying BKD shares since 2014Q3 and with this buy, Mr. Robbins became the main Guru holding BKD.
Robbins is holding BKD at an average price of $33.99 per share.
Brookdale Senior Living was formed as a Delaware corporation in June 2005. The Company operates as an operator of senior living communities. It operates in six business segments: retirement centers; assisted living; CCRCs rental; CCRCs entry fee; Brookdale Ancillary Services and management services. Its retirement center communities are primarily designed for middle to upper income seniors generally age 75 and older who desire an upscale residential environment providing the highest quality of service. Its assisted living communities offer housing and 24-hour assistance with ADLs to mid-acuity frail and elderly residents.
The stock is currently trading at a Forward P/E ratio of 11.55, and since Larry Robbins (Trades, Portfolio) started to buy the stock, the price rose by 9%.
The Stock is 4.49% from its 52 Weeks High and 29.15% from its 52 Weeks Low.
Duing the announcement of Fourth quarter and Full Year Results, Andy Smith, Brookdale's CEO, said,
"As previously announced, fourth quarter CFFO was impacted by lower occupancy, as well as larger-than-usual additions to insurance reserves. The occupancy shortfall was attributable to lower lead generation and conversion rates as our sales force acclimated to a reorganized field structure and, for many, new systems and procedures, as a result of the Emeritus integration.
On the positive side, we are making good progress on our accelerated integration schedule. During 2015, we expect to see the benefits from the uniform systems and processes we are putting in place, from our accelerated capital investments and from a fully rationalized management structure. We remain fully confident in the long-term economic thesis of the merger with Emeritus and in the anticipated year-three revenue and expense synergies."
According to GuruFocus, the stock has a Profitability & Growth of 5/10 with almost flat ratios (ROA -2.10%, ROE -8.33% and ROC -1.48%). These ratios are at average level of the Global Long-Term Care Facilities Industry.
