Larry Robbins Opens New SGRY Position Citing Surgery Partners 39% Undervalued

The Quick Take

• Hedge fund manager Larry Robbins opened a new position in Surgery Partners (SGRY), citing shares as 39% undervalued
• The new SGRY stake adds to Robbins' healthcare-focused portfolio alongside CVS Health, Tenet Healthcare and Thermo Fisher
• A 39% undervaluation thesis signals Robbins expects SGRY's ambulatory surgical center platform to deliver material value recovery

Hedge fund manager Larry Robbins, known for concentrated healthcare sector investments, disclosed a new long position in Surgery Partners Inc (SGRY) with an assessment that shares trade at a 39% discount to intrinsic value. Surgery Partners operates ambulatory surgical centers and surgical hospitals across the United States, competing in a fragmented healthcare services market alongside Tenet Healthcare and Hospital Corporation of America. The 13F disclosure puts SGRY alongside CVS Health, Tenet Healthcare, Thermo Fisher Scientific and Amazon in Robbins' disclosed portfolio — suggesting a broad healthcare sector normalisation thesis. Ambulatory surgical centers have historically taken market share from hospital systems on cost and outpatient care efficiency grounds.

A 39% undervaluation thesis from a credible healthcare specialist implies a conviction call on SGRY's patient volume recovery post-2025 and operational leverage in its surgical platform business model. Institutional copycat flows often follow prominent 13F position disclosures, particularly for mid-cap healthcare names where analyst coverage is thinner. The disclosure could attract additional hedge fund and long-only attention to SGRY's investment case. Healthcare services consolidation remains an active theme, and the undervaluation argument implicitly places a floor under acquisition premium expectations should a strategic buyer emerge.

Watch SGRY's next quarterly earnings for revenue growth, EBITDA margin expansion and case volume trends that would validate or refute Robbins' 39% undervaluation thesis. The macro variable is CMS reimbursement rate policy for outpatient procedures: any favorable update would directly lift SGRY's addressable revenue base. Monitor insider buying activity from SGRY's own management alongside Robbins' reported position as a dual confirmation signal. M&A activity in the US ambulatory surgical center space will provide comparable transaction multiples against which Robbins' valuation case can be independently assessed.

Synthesized from 1 source.