Barry Rosenstein’s Jana Partners lost another 0.3 percent in April, the same loss it posted in March. The hedge fund firm has now lost money in three of the four months of the year, according to a monthly report from Jana obtained by Alpha.
Even so, the New York fund remains in the black by 1.1 percent for the year to date, thanks to its 6.7 percent profit posted in February.
In April, the Dow Jones Industrial Average was up 0.4 percent while the Standard & Poor’s 500 edged up 0.85 percent.
Keep in mind that since its April 2001 inception, Jana Partners has compounded at 13 percent, more than double the S&P 500’s 6.3 percent return.
Jana Nirvana Fund, a more aggressive fund that typically maintains higher exposures than the firm’s flagship fund, fell 0.4 percent in April, trimming its gain for the year to 1.9 percent.
Jana does not provide much more additional information in its monthly reports. However, it appears that Jana was hurt in part by its latest disclosed activist position in Qualcomm, which fell about 1.9 percent in April.
The hedge fund recently said it owns more than $2 billion worth of the mobile chip maker and is urging it to split its semiconductor business from its patent-licensing unit. Jana also wants the company to accelerate its stock buybacks, cut costs and revamp executive compensation, according to earlier reports. Last month Rosenstein told CNBC he mostly wants Qualcomm to execute a transparent analysis and make the right decision. Although he did not rule out a possible proxy fight, he concedes he doubts one will materialize.
Shares of Qualcomm are down about 8 percent for the year. In a separate regulatory filing, Jana had disclosed it has owned a significant stake in Qualcomm since at least the end of December.
Jana currently manages about $11 billion.
In March the firm sold a 20 percent stake to Dyal Capital Partners, a Neuberger Berman unit that has been buying interests in hedge fund firms. This provides Jana with permanent capital that is not subject to sudden redemptions.
We don’t know Jana’s other significant holdings as of the end of the first quarter. The firm will probably release this information mid-May.
However, its largest holdings at year-end did not fare well in April.
Drugstore chain Walgreens Boots Alliance, its largest holding at the end of the fourth quarter, fell about 2 percent in April, cutting its gain for the year to 9 percent.
Car rental giant Hertz Global Holdings, Jana’s second-largest holding at year-end, fell nearly 4 percent after declining 9 percent in the first quarter. However, on Friday, the first day of the new month, the stock rebounded sharply, climbing 3.6 percent.
Online auction giant eBay rose 1 percent last month and is now up close to 4 percent for the year.
Specialty chemicals maker Ashland also fell slightly last month but rebounded sharply Friday.
Jana’s only bright spot among its largest year-end holdings was hedge fund favorite Valeant Pharmaceuticals International. The stock surged more than 9 percent last month alone and is now up more than 50 percent for the year.
Recall that William Ackman’s Pershing Square Capital Management took a 4.9 percent stake in Valeant in March. Ackman teamed up with Valeant last year in a failed bid to buy Botox maker Allergan, which wound up agreeing to be acquired by Actavis instead. Valeant then moved on and acquired Salix Pharmaceuticals.
