What We're Reading ~ Analytical Links 5/22/13
A lesson from Warren Buffett: doubt yourself [WSJ]
Jelisavcic: This is an optimal time to invest in distressed debt [FINalternatives]
Are corporate profit margins abnormally elevated or sustainable? [Greenbackd]
Don't just do something, sit there [The Economist]
Steve Romick: trade into the gold you can eat, farmland [Forbes]
Why investors can't imagine a collapse of the bond market [WSJ]
Telecom's big players hold back the future [NYTimes]
Investor sentiment: fear and greed index [CNNMoney]
Hedge fund leverage approaches all-time high [ai-CIO]
National Bank (NBHC) on the prowl [Barrons]
Why Alibaba could be China's next big IPO [Reuters]
Anatomy of the 10-K [Wall Street Oasis]
How the SEC's marketing rules shortchange investors [ii alpha]
Is the asset management business set for consolidation? [Citywire]
Warren Buffett is bullish on women [CNN Money]
If MBAs are useless, we're all in big trouble [Quartz]
Ron Johnson's 5 key mistakes at J.C. Penney [Fast Company]
Larry Robbins' Glenview Capital Trims Tenet Healthcare (THC) Stake
Larry Robbins' hedge fund firm Glenview Capital just filed a Form 4 with the SEC regarding shares of Tenet Healthcare (THC). Per the filing, Glenview sold 4 million shares of THC on May 14th at a price of $47.75.
After the transaction, Glenview still owns just over 9.8 million shares. This means they've reduced their position size by around 29% as the hedge fund has finally locked in some profits on the name.
Tenet a Big Winner For Glenview
THC shares have been a huge winner for Glenview and we originally highlighted Glenview's thesis on hospitals a year ago. That trade has performed extremely well, as THC is up over 120% since then.
As noted in our post on 2013 Q1 hedge fund performance, Glenview was up 17.94% at the end of the first quarter. And this comes on top of a big 2012 where they returned 29% before fees. Their basket bet on hospital stocks is a big reason why (and especially Tenet, their largest wager of the group).
And while Robbins' firm has sold some Tenet shares, we highlighted how Glenview recently added to another hospital play.
Per Google Finance, Tenet Healthcare is "an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its core business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment, as well as outpatient services."
You can view the rest of Glenview's portfolio in our Hedge Fund Wisdom newsletter (new Q1 issue available now).
Viking Global Increases Intuitive Surgical (ISRG) Position
Andreas Halvorsen's hedge fund firm Viking Global Investors has filed a 13G with the SEC regarding shares of Intuitive Surgical (ISRG). Per the filing, Viking has disclosed a 5.1% ownership stake in ISRG with 2,029,353 shares.
This marks around a 10% increase in the amount of shares they own since the end of the first quarter in March. This filing was required due to portfolio activity on May 10th.
Viking over doubled its stake in ISRG during the first quarter and it's now one of their largest holdings. Shares have fallen from $580 down to as low as $455 and currently trade around $485. As such, ISRG shares are likely trading at or even below levels where the hedge fund was buying.
To see what other US stocks Viking Global has invested in, check out the brand new issue of our Hedge Fund Wisdom newsletter that was just released yesterday.
Per Google Finance, Intuitive Surgical is "designs, manufactures and markets da Vinci Surgical Systems and related instruments and accessories. A da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a high performance vision system. The da Vinci Surgical System translates a surgeon’s natural hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions, or ports. The da Vinci Surgical System is designed to provide its operating surgeon with intuitive control, range of motion, fine tissue manipulation capability and three dimensional (3-D), high-definition (HD) vision while simultaneously allowing the surgeon to work through the small ports of MIS."
For more resources on this fund, we've also posted up a rare interview with Andreas Halvorsen.
Tiger Global Boosts Carter's (CRI) Stake
Chase Coleman's hedge fund firm Tiger Global filed a 13G with the SEC regarding their position in Carter's (CRI). Per the filing, Tiger Global has revealed a 6.75% ownership stake in CRI with 4 million shares.
This marks a 36% increase in the amount of shares they own since the end of the first quarter. This latest disclosure comes due to portfolio activity on May 9th.
To see the rest of Tiger Global's recent portfolio, check out the brand new issue of our premium newsletter that just came out yesterday.
Per Google Finance, Carter's is "a branded marketer of apparel for babies and young children in the United States. The Company owns two brand names in the children’s apparel industry, Carter’s and OshKosh. Its Carter’s brand provides apparel for children sizes ranging from newborn to seven. OshKosh brand provides its line of apparel for children sizes newborn to 12. Its Carter’s, OshKosh, and related brands are sold to national department stores, chain and specialty stores and discount retailers."
New Hedge Fund Wisdom Issue Now Available
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