Glenview Capital Management, the $2.5bn healthcare-focused hedge fund founded by Larry Robbins, is set to meet with senior executives of CVS Health on Monday to suggest strategies for improving the company’s operations, according to a report by The Wall Street Journal.
The report cites unnamed sources familiar with matter as revealing that Glenview has built a significant stake in the struggling healthcare company, and now holds roughly $700m worth of CVS shares.
While declining to comment specifically on its engagement with Glenview or any other firms, CVS has said that it “maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program.”
Glenview did not immediately respond to a request for comment from Reuters.
There has been increasing speculation among fund managers that CVS could attract an activist investor aiming to advocate for changes that would enhance its share value. Investment firm Sachem Head Capital Management recently acquired a new 0.2% stake in CVS during the second quarter, as reported in a regulatory filing in August.
Earlier in the same month, CVS cut its annual profit forecast to a range of $6.40 to $6.65 per share, down from its previous expectation of at least $7.00, marking the fourth time it has lowered its outlook this year. The company also unveiled a multi-year cost-saving plan targeting $2bn in reductions through measures like streamlining operations and leveraging artificial intelligence and automation across its business.
