Glenview Capital Buys More Tenet Healthcare (THC) ~ market folly

Friday, October 19, 2012

Glenview Capital Buys More Tenet Healthcare (THC)

Larry Robbins' hedge fund Glenview Capital has filed a Form 4 with the SEC regarding their position in Tenet Healthcare (THC).  Per the filing, they've disclosed ownership of 13,639,339 shares.  This share total also reflects the 1:4 reverse stock split the company completed on October 10th.

Glenview purchased 34,649 shares on October 15th at a weighted average price of $23.91 and 398,734 shares on October 16th at a weighted average price of $23.99.  We've previously highlighted why Glenview likes Tenet.

In addition to the company's reverse split, Tenet also this month confirmed they would buy back up to $500 million in stock, issue $800 million in new debt, as well as use $400 million toward potential acquisitions.

Robbins' firm has also been long other hospital/healthcare plays such as HCA (HCA), Health Management (HMA), and Lifepoint (LPNT).  Of the basket, THC seems to be their largest bet.

Per Google Finance, Tenet Healthcare is "an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its core business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment, as well as outpatient services."  

For more on this hedge fund, click here for Glenview's activity.

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