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The Morning Brief: Two Glenview Directors Resign from Tenet’s Board

Two employees of Larry Robbins’ hedge fund firm left the hospital management company’s board, citing “irreconcilable differences.”

  • By Stephen Taub

Two representatives from Glenview Capital Management have resigned from the board of directors of Tenet Healthcare Corporation, effective immediately, citing “irreconcilable differences regarding significant matters impacting Tenet and its stakeholders.” Randy Simpson and Matt Ripperger had joined the board 19 months ago.

“We as individuals, and Glenview as an owner, have determined that the most effective way forward to promote strong patient satisfaction and long-term value creation for Tenet is to step off this Board,” the pair state in a letter to the board. The resignations also trigger the expiration of Glenview’s standstill agreement in 15 days. After that period, Glenview “may evaluate other avenues to be a constructive owner of Tenet,” the pair reminds the company in the letter. “Glenview remains fully committed to its ownership stake in Tenet and its desire to drive improved performance, culture and value,” the letter adds.

Glenview, headed by Larry Robbins, is the largest shareholder of the hospital management company, with nearly 18 percent of the shares. It has held a position in the company since early 2012. Glenview in general has a major bet on health care stocks. Investors clearly liked the news: Tenet’s stock jumped more than 14 percent on Friday, to close at $14.45.

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Caxton Corp. disclosed that as of August 9 it held more than 1.8 million shares of Agile Therapeutics, or 5.3 percent of the self-described women’s healthcare company. It owned more than 1.6 million shares at the end of the second quarter. The macro fund headed by Andrew Law only owned ten individual U.S. stocks at the end of the June period.

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Soros Fund Management, the family office of George Soros, disclosed that as of August 7, it owned more than two million shares of Guidance Software, or 6.18 percent of the maker of forensic security software products. This is roughly seven times the number of shares owned by Soros at the end of the second quarter.

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Saba Capital Management, the hedge fund firm known more for its savvy credit bets, cut its stake in the Credit Suisse Asset Management Income Fund, a closed-end mutual fund, to 10.27 percent.

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The average hedge fund posted a 1.15 percent gain in July, according to the calculations of data tracker Preqin. This means hedge funds have been profitable for nine straight months. For the year to date, the average fund is now up 5.93 percent. Little surprise, equity strategies have led the way, gaining 1.66 percent in July. Emerging markets-focused funds returned 2.63 percent in July and are now up 10.09 percent for the year.

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