Hedge fund Glenview off 30% as coronavirus weighs on portfolio

BOSTON (Reuters) – Glenview Capital Management, the hedge fund run by Larry Robbins, has misplaced roughly 30% within the first three months of 2020 because the unfold of the brand new coronavirus damage the healthcare amenities and hospital operators the agency has invested in.

FILE PHOTO: Larry Robbins, Founder, CEO and Portfolio Manager for Glenview Capital Management, LLC speaks through the 2019 Sohn Investment Conference in New York City, U.S., May 6, 2019. REUTERS/Brendan McDermid

The $6.7 billion agency, which invests closely in healthcare shares, mentioned this week that its Glenview Capital Partners fund tumbled 19.5% in March, leaving it down 30.48% within the first three months of the yr, in line with knowledge compiled by funding agency HSBC and seen by Reuters.

Last yr the fund returned 26.28%.

By comparability knowledge from Hedge Fund Research exhibits that the common world hedge fund misplaced 5.88% in March, leaving it down 6.85% for the primary three months.

A spokesman for Glenview declined to remark.

Robbins’ closely healthcare-focused portfolio carried out nicely within the wake of healthcare overhaul within the United States. Insurers and healthcare facility operators had gotten a lift when the Affordable Care Act was signed into regulation in 2010 as extra protection was anticipated to assist their returns. But the unfold of the novel coronavirus is straining hospitals and healthcare amenities, and is now weighing on the portfolio.

Healthcare amenities are being swamped with sick sufferers, together with many aged who’re on decrease paying Medicare medical insurance, and are being compelled to postpone extra profitable elective surgical procedures.

Healthcare amenities operator HCA Healthcare Inc ranked as Glenview’s greatest funding on the finish of the final yr. This yr, inventory value has fallen 45%. Hospital operator Tenet Healthcare Corp, whose inventory has misplaced 67% since January, ranked as Glenview’s third-largest funding on the finish of 2019, in line with a regulatory submitting.

Glenview has been watching the unfold of the brand new coronavirus for weeks and was amongst a handful of distinguished companies to take motion in late February when it introduced that it was suspending an investor convention deliberate for April 22.

The agency mentioned it hoped to host the occasion at a later date in 2020.

Glenview isn’t the one distinguished hedge fund agency to undergo losses this yr, hedge fund business buyers mentioned. David Einhorn’s Greenlight Capital misplaced 21.5% within the first quarter after a 12% drop in March and Daniel Loeb’s Third Point Offshore Fund fell 11% in March, leaving it down 16% for the primary quarter.

Spokespeople for the companies declined to remark.

Reporting by Svea Herbst-Bayliss; with further reporting by Lawrence Delevingne; Editing by Steve Orlofsky


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