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Larry Robbins, chief executive officer of Glenview Capital Management
But an array of factors — including scrutiny of drug price hikes, the political climate, hedge fund repositioning and “ordinary” volatility in hospital earnings — have bedeviled health-care stocks of late, he noted.
Another key factor: questions about the accounting and operational practices of “one or more high-profile consolidators,” a possible reference to Valeant, which faced a 35 percent plunge in the market last week amid concerns about its specialty pharmacy business.
“While there is merit to each of these concerns,” Robbins wrote, “in aggregate we remain highly confident that these are transitory stock price factors that will self-correct because the underlying profit stability and growth, capital allocation, valuation and fundamental outlook all support meaningful equity price appreciation for the coming year and years.”
A Glenview official declined to comment on the details of the firm’s performance. But one investor noted that during the two-year period after a large performance decline, or drawdown, like this year’s, some of Glenview’s strongest returns have historically followed.