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Glenview, Sachem Head, Third Point buy CVS shares during Q3-filings
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Glenview, Sachem Head, Third Point buy CVS shares during Q3-filings
Nov 15, 2024 12:10 PM

NEW YORK, Nov 14 (Reuters) - Three prominent investment

firms bet changes are in the offing at ailing healthcare giant

CVS Health ( CVS ) and added to existing bets and established a new

position during the third quarter, according to regulatory

filings.

Longtime investor Glenview Capital Management bought 2.8

million CVS shares during the third quarter, increasing its

stake by 31%. The firm owned 0.95% of the company on Sept. 30,

the filing shows.

Sachem Head Capital Management, which built its CVS position

during the second quarter, bought over 1 million shares during

the three months ended on Sept. 30, increasing its position by

44%. CVS is now the hedge fund's second-largest holding. Sachem

Head, run by former Pershing Square Capital Management partner

Scott Ferguson, owned 0.28% of CVS at the end of the third

quarter.

Third Point, run by billionaire investor Daniel Loeb, built

a new position in CVS by buying 1.6 million shares. It owned

0.13% of the company at the end of September.

All bought shares before CVS in October tapped David Joyner

to replace Karen Lynch as CEO after the stockprice had tumbled

amid ever worsening financial forecasts. Shares have dropped 32%

since January.

Investors became more agitated over the summer and

Glenview's Larry Robbins, who likes to be called a

constructivist shareholder, recently met with executives to push

for changes. He did not call for the company to break up.

Analysts had speculated that other investors might soon move

in and make noisy demands for changes, including replacing Lynch

as CEO.

So far neither Third Point nor Sachem Head have made any

public demands for CVS.

Investors are required to make the so-called 13-F filings

with the U.S. Securities and Exchange Commission to show what

they owned in U.S. companies' stock at the end of the quarter.

While the filings are backward looking, they are closely

tracked for hints on which companies activist investors may

target.

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