market folly

Glenview Capital's Larry Robbins sat down for an interview with CNBC recently and here's what he had to say:

They're looking at what's happening to the economy and to liquidity.  They don't think there's a systemic issue out there.

He says, "Our own checks with companies indicate that the economy is doing reasonably well in the US, clearly some challenges overseas.  We don't believe that this a change in tone in the market that's likely to be here to stay.  We believe that this is a transitory risk problem."

Robbins also pointed to all the good news coming the US consumer's way recently: wages up, price of oil down.

Glenview took down exposure in the second week of September (net exposure) due to the laundry list of risk items.  They've started to re-risk about halfway to where they were before, as buying opportunities have presented themselves recently.   He argued that certain stock movements have outdone their fundamentals.

He specifically pointed out the rental car industry as being annihilated recently and called it a rational oligopoly as 3 players control 95% market share.  He said the Hertz (HTZ) CEO change has happened and likes Avis Budget's (CAR) opportunity ahead.  Robbins also said the travel industry has been impacted by the ebola scare, but didn't name any companies specifically.


Embedded below are the videos of Robbins' CNBC interview:

Video 1


Video 2


You can view some of Glenview's portfolio activity here.