Larry Robbins, CEO of Glenview Capital Management, said on Monday that he would shorten shares of the industry conglomerate 3M.
Robbins underscored 3M's growing litigation, which spans multiple states and concerns environmental pollution as a result of its operations. The manager added that 3M's claims have increased 87-fold since 2015 and are now putting a significant strain on the company's profits.
Glenview estimates that 3M will lose between $ 4 billion and $ 6 billion as a result of the lawsuit.
"You do not have to be Erin Brockovich to realize it's not a good pattern," said Robbins. "This company paid a $ 850 million settlement to Minnesota 1
New Jersey officials filed a similar lawsuit against 3M in March to clean up water and soil pollution, and the lawsuit in New Jersey was brought to fines against five companies a few days after the US Department of the Environment's motion caused by toxic chemicals commonly known as PFAS] Robbins, a longtime fan of healthcare stocks, said he likes HMO healthcare stocks like Cigna, Humana and the UnitedHealth group, but because of political risk If he does not like pharmaceutical stocks, he emphasized that many Democratic presidential candidates – as well as President Donald Trump – are not paying the high Dr oppose prices.
"For pharmaceuticals … the president can act unilaterally to lower drug prices," Robbins warned at the 2019 New York Son's Conference. "The same drug in the United States costs three times as much as in other developed countries.
Robbins talked extensively about possible changes in the healthcare system and called the "Medicare for All" plan, which is favored by many progressives. "
Robbins said Glenview has three long and 16 short positions in the pharmaceutical industry, and recommends that investors briefly calculate each ETF tracking the fund, choosing Express Scripts-Cigna, CVS-Aetna and McKesson as last year his winners in the field.