The manager of hedge fund Glenview Capital has made big bets on Obamacare, targeting companies he believes stand to benefit from the legislation. He has built positions in major hospital chains such as Tenet Healthcare (THC) and HCA Holdings (HCA) and made notable investments in insurers Anthem (ANTM) and Humana (HUM).
"There were a lot of irrational fears about Obamacare," he said in a 2013 interview with Barron's.
Robbins' health care thesis has helped drive major returns. His flagship hedge fund returned 14.4% net in 2014, and the Glenview Opportunity Fund returned 25%. He delivered stellar numbers in 2012 and 2013 as well.
Larry Robbins' stock picking prowess in the health care sector is undeniable, but health care stocks aren't the only holdings in his portfolio. Here are big five investments he's making in other areas.
Robbins began building a stake in agricultural products provider Monsanto (MON) in the second half of 2013. Nearly two years later, he is still a fan. A regulatory filing corresponding to the first quarter of 2015 shows the company is his top holding as of March 31, and his stake is valued at over $1 billion.
Robbins has discussed his take on Monsanto on several occasions. In a 2014 letter to Glenview Capital investors, he said that "no company can or will catch Monsanto's lead in agricultural products." He recommended the stock at the Harbor Investor Conference in February and revealed that Glenview and Monsanto have engaged in "productive" discussions to take on more debt.
In May, Robbins talked up the stock yet again with Bloomberg and acknowledged Glenview is still waiting for the trade to play out entirely. "When the rest of the market realizes the same value that we see in Monsanto, that's hard for us to understand. The good news is that while you wait, the business is growing value under you, and, to the extent that Monsanto is busy repurchasing shares, they'll be repurchasing them at an ever more attractive price," he said.
Larry Robbins is likely also paying close attention to Monsanto's bid for its Swiss rival, Syngenta (SYT), which has rejected its $45 billion takeover offer. Monsanto has organized meetings with Syngenta shareholders in hopes of advancing talks.
Larry Robbins' No. 2 holding as of the end of the first quarter, Flextronics (FLEX) provides a wide range of electronics manufacturing services, including design, fabrication, assembly and testing. Glenview's position is worth more than $950 million.
Flextronics has been on the Glenview Capital books for years and continues to pay off. In his first quarter letter to investors, Robbins named Flextronics as one of the top five winners of the period, also giving mention to Thermo Fisher Scientific (TMO), Endo International (ENDO), Anthem and Humana.
In early June, Flextronics announced plans to offer $500 million in senior unsecured notes. It will use the proceeds for what it describes as "general corporate purposes." The funds will likely also go towards its pending acquisition of Mirror Controls International.