Larry Robbins: The Rise and Fall of the Glenview Capital Management Founder

Before becoming a billionaire, Larry Robbins faced a massive setback, losing nearly half of his wealth during the 2008 financial crisis when many of his investments plummeted in value. However, this challenge didn’t break him. Instead, it became a launching pad for his resurgence, driven in part by President Barack Obama’s landmark healthcare initiative, "Obamacare." What connects one of the most influential U.S. presidents to one of the most successful modern investors?

Education, Hockey, and Horse Racing

Larry grew up in a modest American household where his father worked two jobs to support the family. To make up for the lack of time spent together, Larry’s father often took him to horse races on weekends. Larry's father, a jockey, competed in these races while young Larry observed and cheered him on.

Even as a child, Larry displayed analytical skills. He meticulously studied the horses and their past performances, using the data to predict race outcomes. This early habit of analysis would later serve him well in evaluating companies and their financial metrics as an investor.

Another passion of Larry’s was hockey, which he began playing at the age of five. Though he didn’t pursue a professional sports career, his love for the game persisted. After achieving financial success, Larry built an ice rink near his childhood home.

However, Larry’s true strength lay in academics, a rarity among his peers. His dedication to learning earned him a spot at the University of Pennsylvania, where he graduated with a bachelor’s degree in economics. Immediately after college, he joined Gleacher & Company as an analyst, where he honed his skills for three years.

Following this, Larry spent six years at Omega Advisors, rising to the position of partner. During this time, he worked closely with billionaire Leon Cooperman, gaining invaluable insights into the world of investment management. By 2001, Robbins felt ready to establish his own hedge fund, leading to the creation of Glenview Capital Management.

Healthcare and Investment Strategy

With a net worth of nearly $1.5 billion by 2014 and Glenview Capital managing close to $2 billion in assets, Larry’s career trajectory proved his instincts were right. However, his path to success was fraught with challenges, including a near-catastrophic loss during the 2008 financial crisis when his portfolio lost half its value.

Despite the setback, Larry’s resilience and adaptability allowed him to bounce back. A significant turning point came with the implementation of "Obamacare" in 2012. Larry’s strategic investments in healthcare companies, like Tenet Healthcare, proved exceptionally lucrative. By 2013, Tenet Healthcare’s stock value had risen by 45%, making it a cornerstone of Glenview’s portfolio.

Today, nearly half of Glenview’s assets are tied to the healthcare sector. Larry attributes much of his success to his willingness to take calculated risks during uncertain times. His ability to analyze market trends and predict the long-term potential of companies has solidified his reputation as a top-tier investor.

Larry describes his investment strategy using a simple analogy: a chair with four legs. These legs represent liquidity, excess cash reserves, steady economic growth, and undervalued companies. According to Larry, the chair remains stable even if one leg falters, but it’s better to maintain balance across all four. This disciplined approach has propelled Glenview Capital to the forefront of the hedge fund industry, surpassing even Larry’s former mentor, Leon Cooperman.

If you found Larry Robbins’ story inspiring, share it with your friends on social media!