WSJ – Larry Robbins, who runs hedge fund firm Glenview Capital Management, made a huge bet on Obamacare and the U.S. stock market that is paying off in a big way. Unless something dramatic happens in the next six weeks, Robbins’ Obamacare stock bet will probably make him one of the top-performing hedge fund managers of 2013. He is on a great run and arguably the hedge fund manager of the year. His main Glenview hedge fund posted a net return of 37% in the first 10 months of 2013, when the Standard & Poor’s 500 index was up 25%. In 2012, Glenview’s main hedge fund returned 24% net, compared to the S&P’s 16% total return. The last two years represent a big comeback for Robbins, whose main hedge fund lost 11% in 2011. He now manages $7.1 billion.
Unlike Robbins, most other hedge fund managers have not been able to keep up with the U.S. stock market. With equity markets being aided by a generous dose of monetary stimulus and the U.S. economy growing at a sluggish pace, many big money managers hedged their bets over the last two years and took a more defensive posture.