Lee Ainslie (Trades, Portfolio), founder of Dallas-based Maverick Capital, disclosed Monday the firm increased its bets on two health care companies: Envision Healthcare Corp. (EVHC, Financial) and Impax Laboratories Inc. (IPXL, Financial).
Ainslie, one of Julian Robertson (Trades, Portfolio)’s former “Tiger Cubs,” employs six industry leads that are experts in one of six major market sectors, including health care. The CEO first discusses with the industry heads about new stock picks and makes the final decisions on the portfolio.
Envision Healthcare
Ainslie expanded his Envision Healthcare position 30.70%, adding 2,349,648 shares for $34.56 per share. With this transaction, the guru boosted the portfolio 1.02%.
Envision Healthcare provides various health care services, including physician-led, medical transportation and ambulatory services. The company has a GuruFocus profitability rank of 8, driven primarily by strong three-year revenue growth compared to its competitors.
Envision Healthcare announced Feb. 7 it expects fourth-quarter 2017 net revenues to reach $2 billion, which would outperform prior-year quarter net revenues by approximately $600 million. CEO Christopher Holden praised the team’s ability to “operate and deliver results at the high end of [the company’s] expectations”: the company expects adjusted EBITDA to reach about $202 million, the high end of the guidance announced Oct. 31 of last year and reaffirmed Jan. 4.
The Vanguard Health Care Fund (Trades, Portfolio) also increased its position in Envision Healthcare during the quarter.
Impax Laboratories
Ainslie boosted his Impax Laboratories position 12.83%, adding 833,500 shares for $16.65 per share. With this transaction, the guru increased the portfolio 0.18%.
Impax Laboratories makes generic drugs, especially “controlled-release” formulations of brand-name pharmaceuticals. The company’s profitability ranks a modest 6 out of 10: although the company’s three-year revenue growth rate outperforms 78% of global competitors, Impax has a weak Piotroski F-score of 2 and profit margins lower than 83% of global specialty and generic drug manufacturers.
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Disclosure: I do not have positions in the stocks mentioned.
