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Jana Partners

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JANA Partners LLC (JANA or JANA Partners) is an investment manager specializing in event-driven investing.[1] It was founded in 2001 by Barry Rosenstein.[2] JANA engages in traditional shareholder activism and socially responsible investing.[3]

JANA Partners LLC
Company typePrivate
IndustryInvestment management
Founded2001; 23 years ago (2001)
FounderBarry Rosenstein
Headquarters
New York City
Websitejanapartners.com

History

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In the 1980s Barry Rosenstein worked with Asher Edelman. In 2001 Rosenstein founded JANA Partners.[4] He began the firm in 2001 with $35 million, making it into a shareholder watchdog.[5]

Investment strategies

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Activist investing

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As an activist investor JANA Partners buys large numbers of shares in companies that it believes are underperforming, and then encourages the companies to make the changes JANA believes are needed to improve performance.[6][5] The hedge fund has made activist investments in Apple Inc., Tiffany's, Whole Foods, ConAgra, PetSmart, Walgreens Boots Alliance, Apache, URS, Safeway, Ashland, Marathon Petroleum, McGraw Hill, CNET, and Kerr-McGee.[2]

In July 2014, JANA announced a 10% share in Petsmart, despite the company's poor prospects at the time. The hedge fund pushed Petsmart towards a sale, and the company was bought in December for $8.7 billion by a group of buyers led by BC Partners.[7][8]

The firm has been highly involved in the food sector.[9] In 2015, it revealed a 7.2% stake in ConAgra and moved to change its board.[10] In July, it successfully appointed former Nestle USA CEO Brad Alford[10] and former Walgreens executive Timothy McLevish to the board.[11]

In 2017, JANA Partners revealed an 8.8% stake in Whole Foods[12] and stated intentions to make changes to the board of directors as well as improve the company's use of technology.[13] Later that year, the fund sold its 26 million shares for a profit of approximately $300 million, following the grocer's buyout by Amazon.[14]

In early 2017 JANA reported in its SEC 13D an agreement with Tiffany & Co. to appoint three new directors; Francesco Trapani, Roger Farah, and James Lillie.[15]

A year later the firm announced a 9.1% stake in Pinnacle Foods Inc., as well as plans to alter the company's cost structure, operations and board of directors. Company shares rose almost 8% as a result.[16] As of April 2018, the firm and its partners held 9.5% of the company.[17] In June 2018, Pinnacle Foods was acquired by Conagra Brands in an $8.1 billion deal, and JANA profited $144 million on its investment.[18]

JANA applied pressure to Bloomin’ Brands Inc. and eventually won a seat on the board[9] as well as the appointment of a new independent director in 2018.[19]

Socially responsible investing

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Think Differently About Kids

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In January 2018, JANA Partners issued a public letter to Apple Inc. alongside the California State Teachers' Retirement System (CalSTRS) called “Think Differently About Kids.”[20][21] The letter called on the company to seek out new ways to limit the effects of technology on children. Together, the two funds hold approximately $2 billion of Apple Inc. shares.[22] In June 2018, Apple released a new iOS feature called "Screen Time" aimed at increasing awareness of potential tech addiction.[23] As a result, JANA Partners and CalSTRS issued a second letter of support.[23][24][25]

JANA Impact Capital

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In January 2018, JANA announced a new fund called JANA Impact Capital, which was formed to expand efforts towards corporate responsibility in leading companies.[26][27] The fund's co-portfolio managers are Daniel Hanson and Charles Penner,[28] and the new advisory board includes musician Sting, his wife Trudie Styler, Sister Patricia A. Daly and Robert Eccles.[29]

References

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  1. ^ Waite, Suzy; Deveau, Scott (11 January 2018). "Rosenstein's Jana Sees Assets Plunge in Half in Two Years". Bloomberg. Retrieved 10 October 2018.
  2. ^ a b "Barry Rosenstein | The Corporation of Brown University". www.brown.edu. Retrieved 2018-05-13.
  3. ^ Herbst-Bayliss, Svea. "Activist investor Jana hired staff for new socially responsible fund". U.S. Retrieved 2018-05-13.
  4. ^ Russo, Charles. "Unnatural Order". Retrieved 10 October 2018.
  5. ^ a b Hargrave, Marshall (12 August 2016). "Rosenstein's Fund Jana Partners Hits a Major Slump". Retrieved 10 October 2018.
  6. ^ Breuninger, Kevin (2017-06-16). "Jana Partners stands to make hundreds of millions from Whole Foods acquisition". CNBC. Retrieved 2018-10-10.
  7. ^ "How Jana Partners got a quick PetSmart payday". New York Post. 2015-01-04. Retrieved 2018-06-14.
  8. ^ Roumeliotis, Greg. "BC Partners to acquire PetSmart for $8.7 billion". U.S. Retrieved 2018-10-10.
  9. ^ a b Liberto, Daniel (2018-04-20). "Jana Partners Takes 9.1% Stake in Pinnacle Foods, Stock Jumps". Investopedia. Retrieved 2018-05-13.
  10. ^ a b Benoit, David; Gasparro, Annie (2015-06-19). "Activist Investor Jana Goes After ConAgra". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-06-14.
  11. ^ "ConAgra Foods and JANA Partners Announce Appointments of Bradley A. Alford and Timothy R. McLevish to ConAgra Foods' Board of Directors". Retrieved 2018-06-14.
  12. ^ Dinges, Gary. "Major Whole Foods investor has to-do list for company". Austin American. Retrieved 2018-10-10.
  13. ^ "Whole Foods Could Head Higher With Jana Partners' Help". Retrieved 2018-05-13.
  14. ^ Thomas, Lauren (2017-07-19). "Activist investor Jana cashes out of Whole Foods in wake of Amazon deal". CNBC. Retrieved 2018-06-14.
  15. ^ "Jana Partners Sees Sparkle in Tiffany". Retrieved 2018-10-10.
  16. ^ CNBC (2018-04-20). "Pinnacle Foods shares surge after activist investor Jana takes 9.1% stake". CNBC. Retrieved 2018-06-14.
  17. ^ "Activist Jana Takes Pinnacle Foods Stake, May Push for Sale". Bloomberg.com. 2018-04-19. Retrieved 2018-06-14.
  18. ^ Bloomberg (2018-06-27). "Activist Jana Is Set to Make $144 Million on Pinnacle Foods Deal". Bloomberg. Retrieved 2018-09-01.
  19. ^ Fortado, Lindsay (2018-02-28). "Bloomin' Brands caves in to activist pressure from Jana Partners". Financial Times. Retrieved 2018-06-14.
  20. ^ Benoit, David (2018-01-08). "iPhones and Children Are a Toxic Pair, Say Two Big Apple Investors". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-05-13.
  21. ^ "A letter from Apple (AAPL) investors Jana Partners and Calstrs powerfully summarizes how smartphones mess with kids' brains — Quartz". qz.com. 8 January 2018. Retrieved 2018-10-10.
  22. ^ "Tech Backlash Grows as Investors Press Apple to Act on Children's Use". The New York Times. 2018-01-08. ISSN 0362-4331. Retrieved 2018-05-13.
  23. ^ a b Mejia, Zameena (2018-06-05). "Apple CEO Tim Cook admits even he spends too much time on his phone". CNBC. Retrieved 2018-06-14.
  24. ^ "JANA Partners founder: There's no question we need to be more responsive to children's needs". CNBC. Retrieved 2018-10-10.
  25. ^ "Jana Partners calls on Apple to address smartphone addiction". CNBC. Retrieved 2018-10-10.
  26. ^ Herbst-Bayliss, Svea. "Fields of Gold? Jana seeks new money, allies with impact hedge fund". U.S. Retrieved 2018-06-25.
  27. ^ Levine, Matt (9 January 2018). "Socially Responsible Investing Isn't Just for Cranks". Bloomberg. Retrieved 10 October 2018.
  28. ^ Williamson, Christine (2018-03-05). "JANA Partners adds to impact fund investment team". Pensions & Investments. Retrieved 2018-06-25.
  29. ^ Benoit, David (2018-01-07). "Wall Street Fighters, Do-Gooders—And Sting—Converge in New Jana Fund". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-06-25.
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