Larry Robbins (Glenview Capital Mgt)

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Larry Robbins

Today we're going to talk about the first speaker at Sohn today, billionaire Larry Robbins.

We followed Robbins into one of his highest conviction, small cap, health care stocks in our premium service, Forbes Billionaire’s Portfolio.

Robbins runs the $10 billion hedge fund Glenview Capital Management. Glenview Capital has produced almost 20% annualized returns (before fees) since 2000. That’s $5 for every dollar produced by the S&P 500 over the same period.

He famously bet that ObamaCare would cause a boon for hospital and insurance stocks. In fact, Robbin’s ObamaCare wager is widely considered one of the most profitable trades of the past decade.

Glenview has made (both realized and paper gains) more than $3 billion in profits after buying up hospital and insurance stocks since 2012.

This hugely profitable bet made Robbins a billionaire and has catapulted his hedge fund to one of the best performing hedge funds over the past 5 years. In 2013 he posted a 101% return.

Like many of the other activists or billionaire investors Robbins’ edge is control. He takes big stakes in companies and he wants board seats. As you probably recognize, this is common practice for the best billionaire investors in the world. Control equals edge.

And you must have an edge in markets to generate outsized returns (i.e. returns above and beyond what the broad market gives you – which is about 8% over the long run).

Today at Sohn, Robbins reiterated his bullish health care theme. He reiterated his long positions in Abbvie (ABBV), saying it’s even a better opportunity today than it was last year. Robbins also said that Brookdale Senior Living (BKD), which is one of the largest operators of senior and assisted living homes, should not be down as much as it is (Brookdale is down 50% over the last year).

These were the two stocks he discussed last year but haven’t done well over the past month. With that, you have a chance to buy Robbins on the dip.

He wrapped up his presentation today talking about Anthem (ANTH) and its potential merger with Cigna (CI). Robbins believes Anthem has huge upside regardless of whether the merger gets approved or not as managed care is a great business and Anthem has an “overcapitalized” or strong balance sheet.

The top 5 Holdings of billionaire Larry Robbins and Glenview Capital Management are: Humana (HUM) 8%, Monsanto (MON) 7%, Cigna Corp (CI) 6%, HCA Holdings (HCA) 5.5%, Thermo Fisher Scientific (TMO) 5%.

Source: Forbes Billionaire's | Pro Perspectives

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The 7 Most Undervalued Stocks In Larry Robbins’ Portfolio

By MATT HOGAN

Source: Finbox.io

https://investorplace.com/2018/03/the-7 ... 240&num=01

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The important influence of low interest

Larry Robbins (of the hedge fund Glenview Capital) looked back at the important influence of low interest rate environments on stocks.

He said "every time ONE of these following conditions has existed, the market has produced positive returns.

Here they are again:
1. When the 30-year bond yield begins the year below 4%, stocks go up 22.1%.
2. When investment grade bonds yield below 4%, stocks go up 16%.
3. When high yield bonds yield below 8%, stocks go up 11.6%.
4. When cash as a percent of asset for non-financials is above 10%, stocks go up 17.6%.
5. When the Fed tightens 0-75 basis points in the year, stocks go up 22%.
6. When oil falls more than 20%, stocks go up 27.5%.

His study showed that there has NEVER been a down year in stocks, when any ONE of the above conditions is met.

Source: Forbes