Why Glenview's Robbins Is Betting on HMOs, Monsanto

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May 5 (Bloomberg) -- Larry Robbins, founder of $7.5 billion Glenview Capital Management LLC, sits down with Stephanie Ruhle to discuss why he is betting on managed-care stocks and his thoughts on Obamacare and GMOs. They speak on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

People are saying, his stuff is so good, we cannot even follow it.

What is your real thesis?

Class i apologize i talk too fast.

None of my public speaking skills came through but we had a lot to say.

The real theme is that while stocks drifted up in the last 18 months thomas the 2014 is really a year where management will have to proactively drive now you through value enhancing measures.

Whether that is capital acquisition and capital allocation comes putting businesses or other valuations of shareholder enhancements, that will separate the ordinary from the story mary returns.

And the business you have.

Let's talk hmo's. was west performing last year.

You had an incredible year last year.

How far will the hmo's run?


The hmo stocks have risen significantly in the past 12 months, but if you take a look at the last five or six years, as we pointed out in presentation, evaluation of hmo's are down 18%. it is hard to find anything whether in the s&p 500, health care in general, or any other sector.

Was that meaningfully cheaper question mark -- cheaper?

As we talked about in the presentation, not only do we see a fundamentally healthy outlook for hmo's in 2015 and beyond, but the management at their disposal have a lot on how to allocate capital and so, you need to look at the investment opportunity today and not necessarily get caught up in the fact we could have bought it cheaper years ago.

We would like to comment about how the policy is doing, not whether it is bad or good policy.

The overriding objective of obamacare was to provide insurance to the uninsured, particularly those who need it, not the held a 20-year-old who felt -- invincible.

Not just old people, but people who live in the poverty line who are struggling to make ends meet, as well as people with pre-existing conditions and other reasons why they could not access the health care system.

We know from a gallup poll released is at approximately six months ago, 17% of the country was uninsured.

We know the uninsured are getting insurance and we know that of the new exchange customers, about half of them never had insurance before.

It is working, from the perspective of covering the uninsured.

It should work.

If we had a program to enhance housing, i am sure we would enhance housing as well.

Class you're talking to people who live below the poverty line.

That takes me to a time when so many people are criticizing jim a's. the importance of eating organic.

You're saying, let's get real.

I am not here as a nutritionist.

I'm here as an aid -- as an investor.

We know whether we're are talking about medicine or the science includes like, we need to accomplish certain objectives and food availability, and food affordability.

There is no way to do that, without using jim o's to enhance the trades within the basic seed so they grow more powerful and more plentiful.

In a utopian world we would all be able to shop with hollywood stars and pay whatever we wanted in whole foods.

We need to increase the food supply area jim osama q2 that.

It is a good deal for farmers to do that and a good deal for the world.

When is the trade going to play out.

You went public in november of 2013. class the funny thing about our is this is we cannot control what the rest of the market does.

We he an opportunity the marketplace gives us and we will position capital program to the opportunity set very we engage management in a discussion on how they could improve value.

One of the things that attracted us was their management were identified they were building up too much cash on the bounce sheet and started to buyback cash at a more accelerated rate.

They had already set forth a -- a review.

They're asking all the right questions.

We will share our views on the debate.

When the rest of the market realizes the same value we see, that is hard for us to understand.

While you wait, the business is growing value under you.

They will be reimbursing them.

These ideas, give us an idea of when you put the trades on.

There is often criticisms that people are looking to get out when they criticize trade.

Class i would start off by challenging the word, trade.

Earlier in the year, our average holding time was 4.2 years.

They are investments rather than trades.

It was increase in the fourth quarter and envisioned that would be a long-term investment.

We began accumulating in 2012, more than half of their holdings.

We tried at these conferences to prevent death present the ideas.

It may not be the highest rate we have an arc for florio, but confidence over the long-term is that all the investors in the room have the potential to make money beside us.

Here, we are getting some of

This text has been automatically generated. It may not be 100% accurate.


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