Published On: Wed, Dec 24th, 2014

Hedge Fund Titan Larry Robbins Boosts Investment in Avis, PVH and Lithia

Larry Robbins

 

Top-performing hedge fund manager Larry Robbins on Dec. 10 increased his holdings in Avis Budget Group Inc., PVH Corp and Lithia Motors Inc., value investing website GuruFocus Real Time Picks, on December 23.

Robbins, who runs the $9-billion Glenview Capital Management, was the most successful hedge fund manager of 2013, returning 84% primarily by betting on healthcare stocks. On Oct. 21, he said he was betting on millennials being able to move out of their parents’ homes and start their own families as the financial crisis subsided.

Robbins built up his stake in Avis Budget Group by 37.97%, buying 1, 497, 500 shares for a total holding of 5, 441, 647 shares or 5.1% of the company, He also increased his position in PVH Corp by 10.4%, adding 427, 071 shares for a total position comprising 4, 534, 423 shares, or 5.5% of the company, and raised his bet on Lithia Motors Inc. by 20.4%, buying an additional 237, 364 shares for total ownership of 1, 401, 848 shares, or 5.92% of the company, according to GuruFocus.

Avis Budget Group Inc., a Delaware corporation, was founded in 1946. It has a market cap of $6.23 billion; its shares were traded at around $58.65 with a P/E ratio of 33.60 and P/S ratio of 0.76. Avis had an annual average earnings growth of 8.70% over the past 10 years, the report said.

PVH Corp was incorporated in Delaware in 1976 as the successor to a business begun in 1881. It has a market cap of $10.22 billion; its shares were traded at around $123.98 with a P/E ratio of 27.60 and P/S ratio of 1.20.

Lithia Motors Inc. was founded in 1946 and incorporated in Oregon. The company has a market cap of $2.28 billion; its shares were traded at around $86.86 with a P/E ratio of 18.30 and P/S ratio of 0.49.

Glenview capital has major exposure in the healthcare sector even though it does not run a primarily healthcare/biotech-focused strategy. The hedge fund gained 10.5% in the first ten months of 2014. Robbins holds positions in Thermo Fisher Scientific Inc.,  Actavis plc,  Endo International and Wellpoint Inc,  HCA Holdings Inc,  Tenet Healthcare Corp and Aetna Inc, Valuewalk.com said.

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