Glenview Capital Acquires More Tenet Healthcare

Larry Robbins' hedge fund firm Glenview Capital has filed a Form 4 with the SEC regarding shares of Tenet Healthcare (THC).  Per the filing, Glenview bought 81,368 shares on August 23rd at a weighted average price of $20.6965.  They now own over 19.43 million shares.

In a previous filing, they also were out buying on August 16th, purchasing 26,456 shares at a weighted average price of $19.8153.

Per Yahoo Finance, Tenet Healthcare is "a diversified healthcare services company. The company operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and coronary care units; physical therapy, orthopedic, oncology, and outpatient services; cardiothoracic surgery, neonatal intensive care, and neurosurgery services; quaternary care in heart, liver, kidney, and bone marrow transplants areas; tertiary and quaternary pediatric, and burn services; and limb-salvaging vascular procedures, acute level 1 trauma services, intravascular stroke care, minimally invasive cardiac valve replacement, imaging technology, and telemedicine access for various medical specialties. In addition, it operates ambulatory surgery and urgent care centers, imaging centers, and surgical hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, as well as value-based care solutions to healthcare systems, individual hospitals, physician practices, self-insured organizations, health plans, and other entities. As of December 31, 2018, the company operated 68 hospitals, 23 surgical hospitals, and approximately 475 outpatient centers, as well as 255 ambulatory surgery, 36 urgent care, and 23 imaging centers in the United States. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas."

Glenview Capital Accumulates More Tenet Healthcare

Larry Robbins' hedge fund firm Glenview Capital has filed a Form 4 with the SEC regarding its position in Tenet Healthcare (THC).  Per the filing, Glenview now owns over 15.99 million shares of THC.

They bought 500,000 shares combined over the course of August 21st, 24th, and 25th at weighted average prices of $49.3752, $46.8964, and $47.

This is the second time they've bought THC shares in August.

Per Google Finance, Tenet Healthcare is "a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets."

Glenview Capital Increases Tenet Healthcare Stake Again

Larry Robbins' hedge fund firm Glenview Capital has filed a Form 4 with the SEC regarding its position in Tenet Healthcare (THC).  Per the filing, Glenview now owns over 15.49 million shares of THC.

Robbins' firm was out buying shares on August 5th and 6th at prices ranging from $53.75 to $55.  In total, they purchased 697,917 shares.

This is the second time Glenview has added to its THC position this summer.

Per Google Finance, Tenet Healthcare is "a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets."

Last week we also detailed additional portfolio activity from Glenview here.

Glenview Capital Adds To Tenet Healthcare Position

Larry Robbins' hedge fund firm Glenview Capital has filed a Form 4 with the SEC regarding its stake in Tenet Healthcare (THC).  Per the filing, Glenview now owns over 14.79 million shares. 

The Form 4 notes that Glenview was out buying 979,482 shares on June 25th at weighted average prices of $54.3028, $54.9934, and $55.924.  This is right around when the Supreme Court decision reaffirmed Obamacare subsidies and hospital stocks rocketed higher.

This has been a longstanding play for Glenview, and a highly successful one at that.  This was part of their basket of for-profit hospital stocks that they wagered would benefit from the Affordable Care Act (ACA).  THC has been their biggest play in the space.

We've also detailed some other portfolio activity from Glenview earlier this week.

Per Google Finance, Tenet Healthcare is "a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets."

Larry Robbins' 4 Long Ideas at Invest For Kids Chicago

We're posting up notes from Invest For Kids Chicago 2014.  Next up is Larry Robbins of Glenview Capital who pitched Tenet Healthcare (THC), eBay (EBAY), Teradyne (TER), and Cadence (CDNS).


Larry Robbins' Invest For Kids Chicago Presentation

•    More constructive than average on the long side. Portfolio trading at ~13x PE.
•    Excess cash at corporates remain high. Akin to Michael Jordan sitting on the bench looking to put up points.
•    Avg HY company can borrow at 6.4% pre-tax. Never been as cheaper or deeper.
•    Shareholder engagement at all time high. Notes Jeff Ubben at MSFT. Ideas: Tenet, EBay, Teradyne, Cadence


•    Tenet Healthcare (THC) – hospital stocks traded down 10% recently. Strong core growth, operating leverage, Vanguard health M&A, reforms provide multi-year growth tailwind, hidden undervalued conifer asset, forward year capital deployment opportunity, industry consolidation all adds up.
•    Unemployment is down and insurance is up which helps. M&A synergies are ramping and achievable for the Vangaurd transaction.
•    Only 7MM Americans have signed up for exchanges, half already had insurance. Vast majority in front.
•    Most hospitals are not for profit. Not just charter, but also income statement.
•    11 hospitals for every person in the house of rep. They are not going to bankrupt the hospital operators (big employers).
•    #1 self-pay/uninsured has gone down. #2 amount of Medicare coverage has increased around 11%. Some cases mid twenties. More people can pay their builds = more profits and revenues for hospitals.
•    Why is the health care bill insulated?? Repeal would take 60 votes from senate and a signature from the President. Want to go after the medical device tax, individual mandate (doesn’t affect hospitals). They are going after the parts not the whole.
•    Public approval for ACA growing.
•    Stocks traded down, provided entry point.
•    Tenet has a 90% + return on repurchases.
•    As they digest vanguard, instead of de-levering, should take advantage of the credit markets to maintain 5x leverage. Could buyback all of the company all else equal (won’t happen, since the share price wouldn’t stay still).
•    Companies who consistently repurchased shares have created value, not a short-term play.
•    Hidden gem is a RCM. Generates $200MM in EBITDA, RCM companies garner higher multiples. Conifer has higher growth than comps on both revenue and EBITDA. Peers trade at 16x EBITDA, versus Tenet at 8x for the whole.
•    If you took every publicly operated hospital operator and combined them, that would be only a 13% market share, so further consolidation is possible, especially considering synergies.
•    Thinks the monetization of Conifer and consolidation are possible catalysts.


•    eBay (EBAY) is the next idea.
•    2/3 of Ebay is the market place and 1/3 is Paypal. Third business is hoarding cash ($15b).
•    Doing the spin-off after shareholder pressure.
•    Growing revenue at 14%, EPS at a higher clip at 15x earnings give or take.
•    Like Ebay as it grows twice as fast as everything else. Higher margins.
•    Back out Paypal at 16x FY16E earnings, creating marketplace at ~12x.
•    People are scared of Paypal competition. It is like being scared of the 12th edition of the Halloween movie.
•    Opportunity to buy two great businesses at a cheap price. Once they separate businesses, marketplace will lever up to 2x net debt. Allow for them to buy ~22% of the PF company.
•    Thinks they can handle higher leverage of 3x – 4x.
•    Event-driven guys left eBay due to other problems (Shire/Fannie/Ebola). Allowed for Glenview to do time arbitrage.
•    Doing everything ppl want them to do. Just have to wait for the actual event to happen. Time arbitrage.
•    Ebay is like a divorce. One is focused on a lifetime of shopping, the other focused on a lifetime of payments.
•    Might be attractive to other players. May want to do a SA/JV or acquisition.
•    Acquirers could pay 22x earnings or more and be hugely accretive.


•    Teradyne (TER) – semiconductor test equipment, lots of cash.
•    High market share (although shrinking), their share has grown at 47% share. They love oligopolies due to smart pricing.
•    Need to fix the lazy balance sheet.
•    Victim of their own success. Buy rates troughed and are now peaking up. 18% is the wireless test business, does have cyclical components.
•    Has $1.2B of cash, don’t need  that much cash,


•    Cadence Design (CDNS) is the next name. Same opportunity as above. Revenue growth is accelerating. Months away from launching a new hardware emulation platform.
•    Overcapitalized balance sheet.

For more from this hedge fund manager, Robbins recently shared other investment ideas at Capitalize For Kids Sohn Canada as well as the Robin Hood Investors' Conference.


Be sure to check out the rest of the hedge fund presentations from Invest For Kids Chicago here.

Glenview Capital Adds to EVERTEC & Tenet Healthcare Stakes

Larry Robbins' hedge fund Glenview Capital filed a 13G and a Form 4 with the SEC disclosing some of their latest portfolio activity.


Glenview Adds to EVERTEC

Their 13G reveals activity in shares of EVERTEC (EVTC).  Per the filing, Glenview now owns 5.64% of the company with over 4.4 million shares.

This means they've doubled their stake since the end of the third quarter, when they initially built their position.  EVTC IPO'd in Q2 of this year.

Glenview's filing was required due to portfolio activity on December 9th.

Apollo has been the largest institutional shareholder, but one of its affiliates recently announced it would be selling 15.2 million shares in a secondary.  Other hedge funds are involved such as Corvex Management, Marble Arch Investments, and Pine River Capital.

Per Google Finance, EVERTEC is "formerly Carib Latam Holdings, Inc., is a full service transaction processing business in Latin America and the Caribbean. The Company provides a range of merchant acquiring, payment processing and business process management services across 19 countries in the region. It processes over 1.8 billion transactions annually, and manages the electronic payment network for over 4,100 automated teller machines (ATM) and over 104,000 point-of-sale payment terminals. It is the merchant acquirer in the Caribbean and Central America and in Latin America. The Company owns and operates the ATH network, one of ATM and personal identification number debit networks in Latin America. In addition, it provides a suite of services for core bank processing, cash processing and technology outsourcing. It serves a diversified customer base of financial institutions, merchants, corporations and government agencies with technology solutions."


Glenview Buys More Tenet Healthcare

Robbins' fund also filed a Form 4 with the SEC and disclosed purchases in shares of Tenet Healthcare (THC) on December 17th & 18th.  In total, they bought 1 million shares at weighted average prices between $39.30 and $41.20.

After this purchase, they now own 12.9 million shares of THC.  This has been a longstanding (and highly profitable) investment for the hedge fund.

Robbins also recently made a rare media appearance to talk about healthcare and for-profit hospitals.

Glenview's Larry Robbins on Healthcare, For-Profit Hospital Stocks

At the Robin Hood Investors Conference late last week, Glenview Capital's Larry Robbins also made a rare media appearance on CNBC and talked about the Affordable Care Act, his healthcare investments, and other topics.

He articulated that the key focus on more Americans gaining healthcare is who is getting insurance versus how many.  He feels that people who actively use health services are the ones signing up first, which benefits hospitals (and he thinks managed care will have some issues).

On for-profit hospitals versus not-for-profit: "Regardless of what the competitive environment is, they (for-profit)  have fared better in the past and they will in the future."

On why he wanted Health Management Associates (HMA) to merge with Community Health (CYH):  "Consolidation is important, scale is important."

Touching on general market valuation, he noted that his portfolio is trading at lower multiples since that's what they've focused on.  But if you turn to the overall market, historically with low interest rates, the market trades at a higher multiple until real inflation goes above 4% he says.

Video 1 on the Affordable Care Act & healthcare in general:


Video 2 on for-profit hospitals (HMA, CYH, THC, HCA etc):


Video 3 on market valuation:

Larry Robbins Rare Interview on HMA, Tenet & What He Thinks About This Market

Larry Robbins' hedge fund Glenview Capital is having another big year.  This is on the heels of stellar 2012 performance as well.  Robbins made a rare media appearance on CNBC to talk about how he's looking to replace 8 board members at Health Management Associates (HMA).


Robbins on HMA

Given that Robbins has essentially gone activist here (he calls it "suggestivist"), it should come as no surprise that he's made such an appearance to drum up shareholder support for his plan.  After all, Glenview owns around 14% of the company.

While Robbins acknowledges that consolidation is a potential outcome for HMA, he notes that the company needs to line-up a better management team and become an excellent standalone company regardless.  He says,

"The companies that did well not only for our long-term portfolio, but for the long-term portfolio of all their owners, are the companies that not only took advantage of that consolidation transaction but drove their company forward with strong operations and strong use of cash flow in an opportunistic format.  The hospitals are no different, yes there were 7 large public hospital chains with yesterday's news that Tenet will buy Vanguard there are now 6, and there are absolutely key benefits not only strategic, but financial to consolidation between one or more large hospital operators.  We are absolutely open minded that that is one way to drive value, but that is not exclusive of the other way to drive value which is a very strong management team and a very strong path to independence, regardless if we (as HMA) become a division of a larger company or whether HMA goes forth on its own right."


Robbins on THC & the Stock Market Overall

In the interview, Robbins also touched on one of his other large hospital plays, Tenet Healthcare (THC).  He likes their deal for Vanguard and notes the company has made prudent decisions.

THC has been a big winner for Glenview over the past year but we highlighted how Glenview's trimmed their THC position recently.

The hedge fund manager also addressed his view on the market overall: "We are not taking risk-off, we believe this is still a very above average opportunity set for long-term investors and frankly as an industry, we all need to remind ourselves to think and act like owners."

Embedded below is the video of Robbins' CNBC appearance:




For more on this hedge fund, be sure to check out Glenview's presentation on HMA that was released today.

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).

Larry Robbins Buys More Tenet Healthcare Shares

Larry Robbins' hedge fund Glenview Capital filed another Form 4 with the SEC revealing further purchases in Tenet Healthcare (THC).  We just posted up about how Glenview was buying THC shares last week.

The latest filing indicates that Glenview purchased an additional 200,000 shares of THC on October 19th at a weighted average price of $23.53.  This brings their total ownership to 13,839,339 shares.

To see why this hedge fund has been buying, check out why Glenview likes Tenet.

The company recently completed a 1:4 reverse stock split and confirmed they'd be buying up to $500 million in stock, issue $800 million in new debt, and use $400 million toward potential acquisitions.

It's worth noting that Glenview has also owned other hospital/healthcare plays, including HCA (HCA), Lifepoint (LPNT), and Health Management (HMA).

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."

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.

Glenview Capital Adds to Tenet Healthcare Position: Why They Like THC

Larry Robbins' hedge fund Glenview Capital just filed an amended 13G with the SEC regarding their position in Tenet Healthcare (THC).  Per the filing, Glenview has now disclosed a 12.68% ownership stake in THC with 52,823,831 shares.

This marks a 28% increase in the number of shares they own.  Due to the disclosure dates, they've added these shares between July and September.  The 13G from today was filed due to trading activity on September 14th.

Why Glenview Likes Tenet

On the heels of the Affordable Care Act (ACA) passing, Tenet was one of Glenview's core holdings.  The hedge fund originally started its stake in THC back in March.  Their thesis is essentially that for-profit hospitals are entering a "growth on growth" phase due to expanded health insurance coverage.

In the free sample of our quarterly newsletter, we highlighted the following:

"Robbins laid out his long thesis for hospitals by pointing out that EBITDA has grown every year for them as they offer 9% CAGR, 1% admission growth, and 2% leverage.  He says hospitals benefit from Medicaid eligibility as it reduces bad debt expense ... Robbins points out that it's unlikely that the government could unilaterally take a for profit hospital's profits from reimbursement."

Consensus EPS growth for 2011-13 for THC had been around 28% while Glenview expects 41% from 2011-2014.  Glenview also believes that meaningful share repurchase opportunities and/or tuck-in acquisitions are possible.

As of the end of Q2, the hedge fund also owned other companies in the space, including: HCA (HCA), Health Management Associates (HMA), and LifePoint Hospitals (LPNT).  That said, THC does seem to be their largest position in the segment and shares recently hit 52-week highs.

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."

To see what other positions this hedge fund owns, check out the latest issue of our premium newsletter.

Larry Robbins' Ira Sohn Presentation: Long THC, HMA, HCA, LPNT; Short ITC

We're posting up notes from the Ira Sohn Conference.  Glenview Capital's Larry Robbins gave a presentation on going long/short various equities.

"How to cope with the market's electile dysfunction."
Disclaimer: do your own work.
Stresses now: Economy, liquidity, DC, legal review of Obamacare.
New highs: treasuries, utilities, defense.

He says long hospitals/life sciences, short treasuries/Utilities/defense.  We recently posted up why Robbins likes Life Technologies (LIFE) as well.

Long: Tenet Healthcare (THC), Health Management Associates (HMA), HCA (HCA), & LifePoint Hospitals LPNT

EBITDA has grown every year for hospitals, 9% CAGR, 1% admission growth, 3% pricing, 2% leverage, new hospitals 3%. "Affordable Care Act" is now 2409 pages, has 2 key legal questions: is the individual mandate constitutional? If not, is the rest of the ACA law, or is it all thrown out? If all thrown out, it's good for hospitals because some cuts come out.

Hospitals benefit from medicaid eligibility, reduces bad debt expense. At 6x eps, thinks worth it in any option. Worst case, no reform, 21% CAGR on eps, Medicaid expansion implies 28%, plus individual mandate over 30%. Half of hospitals are non-profit, just get by.

We flagged when Glenview bought more HMA in April as well as when Glenview started its stake in THC back in March.

For profit hospitals- can the government unilaterally take their profits from reimbursements? Not likely. P/E averages are 8.1x for the sector.


Short ITC Holdings (ITC)

Short this utility. Transmission company. FERC regulated. 60/40 equity/debt. Allowed 11% ROE, FERC allows 13.2%, so customers are overpaying by $260M to $550M.

No accounting issues, just getting a "sweetheart deal" that the regulators won't let this go on forever. If you cut their ROE by 194 bp, earnings get hit by 18%. Consensus EPS is $4.00, could really be $2.00, NI down by 20%, and share count up 60%.


P.S. - Don't miss other presentations from David Einhorn, John Paulson, Bill Ackman & more: notes from Ira Sohn Conference 2012.

Glenview Capital Starts Tenet Healthcare (THC) Position

Larry Robbins' hedge fund firm Glenview Capital has just revealed a new stake in Tenet Healthcare (THC) via a 13G filed with the SEC.

Per the filing, they now own 22,405,900 shares of THC, or a 5.46% ownership stake in the company. The filing was just made due to portfolio activity on March 13th. Glenview did not own a stake at the end of 2011. Shares are up around 2% for the year thus far.

Some of the largest institutional holders of THC shares as of 2011 year-end include Harris Associates, Charter Bridge Capital, Samlyn Capital, and Highland Capital Management,.

Per Google Finance, Tenet Healthcare is "an investor-owned company that operates in one line of business: the provision of health care services through the operation of acute care hospitals and related health care facilities. All of Tenet’s operations are conducted through its subsidiaries and affiliates. Its business includes inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment."