Larry Robbins' Glenview Capital Boosts Health Management Associates Stake ~ market folly

Monday, December 31, 2012

Larry Robbins' Glenview Capital Boosts Health Management Associates Stake

Highlighting some relevant SEC filings from over the holidays, we wanted to flag a series of Form 4's and an amended 13G filed by Larry Robbins' hedge fund firm Glenview Capital on Health Management Associates (HMA). 

Per the filings, Glenview has revealed over a 13% stake in HMA with 34,059,503 shares.  Around two weeks ago, Glenview purchased 5,430,227 HMA shares at prices between $9 and $9.19.  This marks almost a 33% increase in their position size since the end of the third quarter.

While those share prices are weighted averages from the SEC filings, HMA is largely still trading around those levels now.

Glenview Continues To Bet On Hospitals

Hospitals and healthcare plays have been a big theme in Glenview's portfolio and Robbins has done extremely well with some of these positions (in particular Tenet Healthcare).  Robbins originally pitched going long hospitals back in May and Glenview was also recently out adding to its position in Community Health Systems.

Earlier this month, HMA was profiled on an episode of CBS' show "60 Minutes," which called into question the company's admission policies.  HMA defended itself ahead of the investigative journalism piece that aired.

Per Google Finance, Health Management Associates "operates general acute care hospitals and other health care facilities in non-urban communities."

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