Glenview Capital Management

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Glenview Capital Management[1]
Privately Held[1]
IndustryInvestment Management[2]
FoundedSeptember 15, 2000[2]
Headquarters767 Fifth Avenue, New York, New York 10153[3]
Area served
Worldwide[4]
Key people
Larry Robbins, Founder, CEO, Portfolio Manager
AUMUS $16.5 Billion (December 2017)[5]
Number of employees
72 (2014)[6]

Glenview Capital Management is a hedge fund founded in 2000 with approximately $16.5 billion of capital under management as of December 2017.[5] Glenview manages capital for investors through a series of private investment funds.[1][4] The firm was founded by Larry Robbins, the firm’s CEO and portfolio manager, and is based in New York.[2][7]

History[edit]

Robbins left Omega Advisors in 2000 to form Glenview Capital Management, named after the suburban Chicago area where he started playing hockey at age five.[8][9]

In 2017, it was reported that Glenview was the 67th largest hedge fund in the world[10] with 72 employees.[6]

Investment products and strategies[edit]

Glenview’s investing style is most commonly tied to the category of Growth at a Reasonable Price or “GARP” and focuses on companies in industries that are stable, predictable and steady, with recurring revenue streams or entrenched market positions.[11][12][13] Glenview’s flagship funds which launched in 2001 employ a long/short strategy focused on investments in equity and fixed income securities. In 2007, Glenview launched the Glenview Opportunity or “GO” funds which employ a purely opportunistic investment approach. Across these two strategies Glenview manages the following investment funds: Glenview Capital Partners, L.P., Glenview Institutional Partners, L.P., Glenview Capital Partners (Cayman), Ltd., Glenview Capital Opportunity Fund, L.P. and Glenview Offshore Opportunity Fund, Ltd.[2][14] In 2013, the firm placed number one on the Bloomberg Markets annual ranking of best performing large hedge funds due to the performance of the Glenview Capital Opportunity Fund, which saw an 84% gain through October 31.[15][16]

Investment history[edit]

Glenview holds investments in a broad range of industries including healthcare, industrials, consumer services and technology companies.[6][13]

In 2013, Health Management Associates (HMA) and Community Health Systems announced that they had agreed to a $3.9 billion merger. Owning a 14.6% stake in HMA, Glenview objected to the terms of the deal and submitted consents from a majority of the shareholders of HMA to remove and replace the entire Board of Directors.[17][18] The merger was completed in January of 2014.[19]

In 2016, Glenview became the largest shareholder in hospital chain Tenet Healthcare with a 17.8% stake in the company.[20]

In 2017, after Dow Chemical engaged in merger discussions with DuPont, Glenview and other shareholders pushed for changes to the plan of how the combined company, DowDuPont, would be broken up.[21]

In 2018, Cigna announced that the company had agreed to buy Express Scripts for $67 billion. After activist investor Carl Icahn called the deal a “$60 billion folly,” Glenview declared its support of the transaction in a letter to Cigna shareholders, urging other investors to do the same. The merger was approved in August 2018.[7][22]

References[edit]

  1. ^ a b c Smita Nair (November 26, 2013). "Glenview Capital Management starts new positions in AAP, AMT, DG, NXPI, sells NTAP, ROVI—13F Flash A". Market Realist.
  2. ^ a b c d "Company Overview of Glenview Capital Management, LLC". Bloomberg Businessweek. Retrieved August 26, 2014.
  3. ^ "Glenview Capital Management - Investor Profile". HedgeTracker. Retrieved August 24, 2014.
  4. ^ a b "Glenview Capital Management". Street Insider. Retrieved August 25, 2014.
  5. ^ a b "Glenview Capital Management". NASDAQ. December 31, 2015.
  6. ^ a b c Katherine Burton, Anthony Effinger and Kelly Bit (February 1, 2014). "Larry Robbins: Off to the Races". Bloomberg News.
  7. ^ a b Kim, Tae (9 August 2018). "Glenview's Larry Robbins takes on Carl Icahn, defends Cigna-Express Scripts deal". CNBC. Retrieved 3 October 2018.
  8. ^ "Larry Robbins". Forbes. August 26, 2014.
  9. ^ "Larry Robbins". Wharton School of the University of Pennsylvania. Retrieved August 23, 2014.
  10. ^ "Hedge Fund 100 Firm Profiles". Institutional Investor's Alpha. May 27, 2016.
  11. ^ William Alden (June 25, 2013). "Glenview Seeks to Replace Board of Hospital Group". The New York Times.
  12. ^ Jake Mann (September 19, 2012). "This Hedge Fund's Stake in Tenet Healthcare is Now Above 10%". Insider Monkey.
  13. ^ a b Erin E. Arvedlund (July 27, 2013). "Bullish on Obamacare". Barron's Magazine.
  14. ^ Katherine Burton, Anthony Effinger and Kelly Bit (January 7, 2014). "Glenview's Robbins Tops Hedge-Fund Ranking". Bloomberg News.
  15. ^ Lopez, Linette (8 January 2014). "It's Crazy How Much Better 2013's Best Hedge Fund Did Than Almost Everyone Else". Business Insider. Retrieved 10 October 2018.
  16. ^ Burton, Katherine; Effinger, Anthony; Bit, Kelly (7 January 2014). "Glenview's Robbins Tops Hedge-Fund Ranking". Bloomberg Markets. Retrieved 10 October 2018.
  17. ^ Kelly, Susan (13 August 2013). "Glenview says shareholders vote to replace HMA board". Reuters. Retrieved 3 October 2018.
  18. ^ Benoit, David. "Glenview Claims Victory in HMA With Very Spock-Like Attitude". Wall Street Journal. Retrieved 3 October 2018.
  19. ^ Creswell, Julie; Ableson, Reed (11 September 2011). "For One Hedge Fund, a Bet on the Affordable Care Act Sours". New York Times. Retrieved 3 October 2018.
  20. ^ McConnell, William (1 September 2017). "Tenet's Dispute With Glenview Comes to a Head as CEO Exits". The Street. Retrieved 3 October 2018.
  21. ^ Benoit, David (27 June 2017). "Dow Investor Glenview Calls for Changes in Post-DuPont Merger Breakup". Wall Street Journal. Retrieved 3 October 2018.
  22. ^ Deveau, Scott; Tracer, Zachary (10 August 2018). "Glenview Scores Win over Carl Icahn as ISS Supports Cigna's Deal Plan". Bloomberg News. Retrieved 3 October 2018.