market folly

Larry Robbins' hedge fund Glenview Capital has been quite busy with notable portfolio activity as of late. A few days ago, we detailed how Glenview had been aggressively adding shares of PHH. This time around, they've disclosed activity in UK markets. Due to trading activity on the 16th of July, 2010 Glenview Capital has disclosed an increase in its stake in Punch Taverns traded on the London Stock Exchange (LON: PUB). They now own 10.37% of the shares outstanding. This is up from their previous stake of 9.51% disclosed back in January of this year. Interestingly enough, over 80% of their position is via derivatives in the form of total return swaps.

Yet again, we see a divergence of opinion between prominent hedge fund managers. While Robbins has recently added to his PUB position, we highlighted back in November how David Einhorn's Greenlight Capital had reduced its stake in Punch Taverns. Given the amount of time that has elapsed, Robbins must see some sort of opportunity here. In fact, Glenview Capital fancies UK pubs in general, as they also own 12.27% of the shares outstanding of Enterprise Inns (LON: ETI). For more of this hedge fund's investments, be sure to the rest of Robbins' recent stock picks, as well as his thoughts on global equities in 2010 at a hedge fund panel.

Taken from Google Finance, Punch Taverns is "engaged in the operation of public houses under either the leased model or as directly managed by the Company. The Company operates in two business segments: punch partnerships, a leased estate and punch pub company, a managed estate. Punch Partnerships is the Company’s leased division, comprising 6,841 pubs nationwide. Punch Pub Company is its managed division, comprising 835 pubs nationwide."

Be sure to check out the rest of our coverage of hedge fund positions in UK markets.