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June 09, 2015 at 09:11 PM
There doesn’t appear to be much consensus right now as to where the market is headed, and even billionaire investors seem to be at odds as to what’s to come.
In his first quarter letter to investors, Lone Pine Capital founder Steve Mandel called an impending and undefined interest rate hike an “investment conundrum.” Leon Cooperman, on the other hand, has basically said an increase is no big deal.
David Einhorn laid out a major case against fracking companies and specifically pinpointed Pioneer Natural Resources at the Sohn Investment Conference in May. In the first quarter of the year, fellow billionaires Seth Klarman, Jorge Lemann and Ray Dalio bought the stock.
Of course, not all great minds think alike — even (and perhaps especially) on Wall Street.
There are, however, a couple of trends that can be pinpointed across numerous billionaire investors and hedge fund managers, revealed in their latest regulatory holdings disclosures corresponding to the first quarter of 2015.
Health Care
Billionaires have been bulking up on health care for a while and continue to do so in 2015. According to Novus, hedge funds increased their long exposure to health care to $289.67 billion during the first three months of the year.
Larry Robbins of Glenview Capital has been leading the charge on the health care front. The sector comprises more than one third of his public equity portfolio, including companies like Thermo Fisher Scientific, Humana and Anthem, and drove much of his flagship hedge fund’s 14.4% net return and the Glenview Opportunity Fund’s 25% climb.
In a May interview with Bloomberg, Robbins discussed his take on what’s to come in health care. He said he sees a “fundamentally healthy outlook” for HMOs for 2015 and beyond and talked about his continued bet on the rollout of Obamacare.
