Glenview Capital's increased stake in Cadence Design Systems (Part 1 of 10)

With a portfolio value of $19.2 billion, Glenview Capital is a “suggestivist” fund that is known for building long-term relationships with corporates in order to enhance shareholder wealth. Founded and managed by Larry Robbins, the firm deploys fundamental analysis for security selection in large-cap growth stocks.

While Glenview Capital’s portfolio focuses on healthcare stocks, it also has significant exposure to service and technology sectors. In a recent series, we discussed the fund’s increased stake in the semiconductor test equipment firm Teradyne (TER), which Glenview disclosed in its 13G filing.

In November 2014, Glenview Capital revealed that it had increased its position in Cadence Design Systems (CDNS) by 3.25 million shares, bringing its position to 17.7 million shares in the company. An electronic design and automation firm, Cadence currently accounts for 1.71% of the fund’s portfolio. Glenview Capital owns 6.03% of Cadence’s total outstanding shares.

The fund’s exposure to the technology sector is now ~17.0%, with notable positions being Thermo Fisher Scientific (TMO), Flextronics International (FLEX), Cadence Design Systems (CDNS), Computer Sciences Corp. (CSC), Applied Materials (AMAT), and Teradyne (TER).

Investors seeking to obtain exposure to the tech sector can consider investing in the Technology Select Sector SPDR Fund (XLK). XLK’s top position is in tech giant Apple (AAPL), which makes up 16.2% of the ETF.

Continue to Part 2

Browse this series on Market Realist:

• Part 2 - Key overview of Cadence Design Systems’s operations
• Part 3 - Cadence delivers end-to-end solutions in EDA and IP
• Part 4 - Why EDA is integral to the semiconductor industry