Glenview Capital Management, founded in 2000 by Larry Robbins (Trades, Portfolio), disclosed on Wednesday it established positions in Express Scripts Holding Co. (ESRX, Financial), T-Mobile US Inc. (TMUS, Financial), AmerisourceBergen Corp. (ABC, Financial), Humana Inc. (HUM, Financial) and Facebook Inc. (FB, Financial) during the first quarter.
The firm, which manages the Glenview Funds and Glenview Opportunity Funds, focuses on delivering attractive returns through an intense focus on deep fundamental research and individual security selection.
Express Scripts
Glenview invested in 4,641,986 shares of Express Scripts Holding for an average price of $76.29 per share. The firm dedicated 1.88% of its portfolio to the position.
Express Scripts, a company listed in the Buffett-Munger model portfolio, said on May 2 that the latest quarterly results “reflect [the company’s] success in driving greater value for clients, delivering better health outcomes for patients and growth in earnings for shareholders.” GuruFocus lists five positive investing signs for the St. Louis-based company, including expanding operating margins, consistent revenue growth and a strong Piotroski F-score of 7. Express Scripts Holding’s business predictability ranks three stars out of five.
On March 8, Express Scripts and Cigna Corp. (CI, Financial) announced a definitive merger agreement in which Cigna will acquire Express Scripts in a $67 billion cash-and-stock transaction. The companies expect to close the merger Dec. 31.
T-Mobile
Glenview invested in 4,501,420 shares of T-Mobile for an average price of $62.56 per share. The firm dedicated 1.61% of its portfolio to the position.
T-Mobile announced on April 29 it reached a definitive merger agreement with Sprint Corp. (S, Financial), in which the Washington-based telecommunication services company will acquire Sprint for approximately $146 billion. Key synergies of the merger include the expansion into the 5G network and “over $6 billion in expected run rate synergies” according to CEOs John Legere and Marcelo Claure.
AmerisourceBergen
Glenview invested in 971,936 shares of AmerisourceBergen for an average price of $96.06 per share. The firm dedicated 0.49% of its portfolio to the position.
AmerisourceBergen provides drug distribution and related health care services and solutions to pharmacies and other health institutions. The company’s profitability ranks 7 out of 10: even though operating margins have contracted approximately 3.3% over the past five years, AmerisourceBergen’s return on equity and Greenblatt return on capital outperform 94% and 83% of global medical distribution companies. GuruFocus ranks the company’s business predictability four stars out of five.
Humana
Glenview invested in 146,560 shares of Humana for an average price of $270.72 per share. The firm dedicated 0.23% of its portfolio to the position.
Humana offers insurance products as well as health and wellness services. GuruFocus ranks the company’s business predictability five stars as the company had consistent revenue and earnings growth over the past 10 years.
Glenview invested in 212,473 shares of Facebook for an average price of $179.55 per share. The firm dedicated 0.2% of its portfolio to the position.
Facebook CEO Mark Zuckerberg said on April 25 the company had strong active user growth during the quarter despite headwinds from the Cambridge Analytica data scandal. The company’s profitability ranks 9 out of 10, driven by several factors, including expanding operating margins and returns that outperform 85% of global competitors.
Several gurus, including Chris Davis (Trades, Portfolio), David Tepper (Trades, Portfolio), Steve Mandel (Trades, Portfolio) and Ruane Cunniff (Trades, Portfolio), expanded their positions in Facebook as the company offers good growth potential.
See also
Glenview increased its Newell Brands Inc. (NWL, Financial) holding to 25,968,987 shares on March 16, purchasing 8,956,055 shares for $28.66 per share. Two days later, Carl Icahn (Trades, Portfolio) disclosed a 30,279,791-share stake in the company.
Newell Brands markets a wide variety of household product brands, including Sharpie, PaperMate, Rubbermaid and Jostens’s.
Glenview also added to its position in FedEx Corp. (FDX, Financial), Cardinal Health Inc. (CAH, Financial) and Pentair PLC (PNR, Financial) during the quarter.
Disclosure: No positions.
