Glenview Capital Management Buys J.C. Penney, Sells NetApp

Larry RobbinsImage source: Bloomberg Video Screenshot

Glenview Capital Management is headed by CEO and portfolio manager Lawrence Michael Robbins, and it employs a GARP (growth at a reasonable price) stock picking strategy. It currently has $11.8 billion invested in 65 stocks, compared to $10.9 billion invested in 61 stocks last quarter.

Glenview Capital’s new positions

Glenview opened large new positions with Advance Auto Parts, Inc. (NYSE:AAP) this quarter (2.7 million shares worth $224 million), American Tower Corp (NYSE:AMT) (1.8 million shares worth $132 million), and Dollar General Corp. (NYSE:DG) (2.2 million shares worth $125 million). It also opened positions with CenterPoint Energy, Inc. (NYSE:CNP) (1.6 million shares worth $39 million), Evertec Inc (NYSE:EVTC) (2.1 million shares worth $47 million), Family Dollar Stores, Inc. (NYSE:FDO) (1.3 million shares worth $84 million), Global Payments Inc (NYSE:GPN) (1.5 million shares worth $76 million), Monsanto Company (NYSE:MON) (645,000 shares worth $67 million), NRG Energy Inc (NYSE:NRG) (525,000 shares worth $14 million), and ADT Corp (NYSE:ADT) (2 million shares worth $82 million).

Glenview Capital’s closed positions

Glenview also closed its position on Charter Communications Inc (300,000 shares), Clearwire Corp (NASDAQ:CLWR) (32 million shares), LIBERTY GLOBAL PLC (NASDAQ:LBTYA) (1 million shares) and a particularly large position on NetApp Inc. (NASDAQ:NTAP) – 2.9 million shares that were worth $108 million at the beginning of the quarter.

The hedge fund went deep on J.C. Penney Company, Inc. (NYSE:JCP), increasing its shares from 8.4 million to 12 million, while the value of its position fell from $144 million to $109 million. J.C. Penney has had interest from a number of institutional investors who think that it is currently undervalued. Its biggest increase was in Crown Castle International Corp. (NYSE:CCI), going from 1.7 million shares last quarter to 5.6 million, now worth $411 million. Glenview also increased its Microsoft Corporation (NASDAQ:MSFT) holdings from 2.9 million shares to 8.6 million, now worth $288 million, and its holdings of PVH Corp (NYSE:PVH) from 546,000 shares to 1.8 million shares, now worth $209 million. It also increased Canadian Pacific Railway Limited (TSE:CP) (NYSE:CP) (262,000 shares to 748,000, now worth $92 million), Carter’s, Inc. (NYSE:CRI) (523,000 shares to 807,000, now worth $61 million), and Lamar Advertising Co (NASDAQ:LAMR) (700,000 shares to 1.2 million now worth $58 million).

Glenview’s biggest decrease was in Life Technologies Corp. (NASDAQ:LIFE), going from 10.2 million shares last quarter to 4.2 million shares worth $318 million now. It also reduced Constellation Brands, Inc. (NYSE:STZ) (1 million shares to 655,000 now worth $36 million), Calpine Corporation (NYSE:CPN) (6.1 million shares to 4.4 million now worth $86 million), and Xerox Corporation (NYSE:XRX) (33 million shares to 25 million now worth $259 million).

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About the Author

Michael Ide
Michael has a Bachelor's Degree in mathematics and physics from Boston University and Master's Degree in physics from University of California, San Diego. He has worked as an editor and writer for several magazines. Prior to his career in journalism, Michael Worked in the Peace Corps teaching math and science in South Africa.

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