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.