It was feast or famine last month for JANA Partners, the activist hedge fund firm headed by Barry Rosenstein.
Most of its significant long positions were either up or down by large amounts. But when the full portfolio’s performance came in at month-end, the results were seemingly ho-hum.
The firm’s flagship JANA Partners funds fell 0.2 percent in November, trimming their gain for the year to 2.1 percent. The firm’s more turbo charged JANA Nirvana fund declined 0.5 percent in November, its third straight monthly loss. As a result, the fund is now up just 1.7 percent for the year.
Last month, the Standard & Poor’s 500 stock index gained 1.8 percent, excluding dividends reinvested. Including dividends, it is up 5.1 percent for the year.
Several of JANA’s biggest long holdings fared very well last month.
For example, medical device maker Zimmer Biomet Holdings, which was JANA’s biggest long at the beginning of November, gained 3 percent for the month. Industrial distributor HD Supply Holdings, the hedge fund firm’s second-biggest long at the beginning of November, returned 6.2 percent.
Jack in the Box surged 12.4 percent in November. The fast-food company is reportedly exploring the possibility of a sale, according to a Reuters report.
As Institutional Investor earlier reported, in October, JANA entered into a confidentiality and standstill agreement with Jack in the Box. Under the pact, which expires on December 14, JANA agreed to maintain the confidentiality of certain business information that the company will provide to it and to abide by customary standstill obligations, according to a regulatory filing.
Unfortunately for JANA, several of its largest longs also declined sharply for the month.
For example, packaged-foods giant ConAgra Brands fell 9.2 percent in November. On October 26, ConAgra — an earlier JANA activist target — completed its acquisition of Pinnacle Foods, which was by far JANA’s biggest long holding at the end of the third quarter. After the deal was finalized, ConAgra moved up to become JANA’s third-biggest long.
JANA was especially hurt by No.4 holding Tiffany after the jeweler’s revenue and same-store sales came in below expectations, in part because of the weakening Chinese economy. The stock slid 18.2 percent in November alone.
In the third quarter JANA aggressively turned over its portfolio. It established 16 new positions and liquidated 19 positions.
Two of its largest new positions made money last month.
The biggest new position was Exact Sciences, now its sixth-largest common stock long. II earlier reported that JANA told clients in a recent exposure report that Exact Sciences was among its five biggest long positions. It is the maker of Cologuard, a screening test for colorectal cancer.
In November, the stock returned 9.8 percent
JANA also took a stake in Keurig Dr Pepper. The firm held a sizable position in the company’s call options in the second quarter. Last month the stock gained 3.9 percent.
