Larry Robbins' Glenview Capital Trims Tenet Healthcare (THC) Stake ~ market folly

Wednesday, May 22, 2013

Larry Robbins' Glenview Capital Trims Tenet Healthcare (THC) Stake

Larry Robbins' hedge fund firm Glenview Capital just filed a Form 4 with the SEC regarding shares of Tenet Healthcare (THC).  Per the filing, Glenview sold 4 million shares of THC on May 14th at a price of $47.75.

After the transaction, Glenview still owns just over 9.8 million shares.  This means they've reduced their position size by around 29% as the hedge fund has finally locked in some profits on the name.

Tenet a Big Winner For Glenview

THC shares have been a huge winner for Glenview and we originally highlighted Glenview's thesis on hospitals a year ago.  That trade has performed extremely well, as THC is up over 120% since then.

As noted in our post on 2013 Q1 hedge fund performance, Glenview was up 17.94% at the end of the first quarter.  And this comes on top of a big 2012 where they returned 29% before fees.  Their basket bet on hospital stocks is a big reason why (and especially Tenet, their largest wager of the group).

And while Robbins' firm has sold some Tenet shares, we highlighted how Glenview recently added to another hospital play.

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."

You can view the rest of Glenview's portfolio in our Hedge Fund Wisdom newsletter (new Q1 issue available now).

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