MarketFolly.com
02-03-2011, 08:11 AM
Barry Rosenstein's hedge fund JANA Partners released its year-end 2010 letter and in it we see they've returned 14.3% annualized since inception in April 2001. JANA returned 8.4% last year and you can see how they stack up against others in our post on 2010 hedge fund returns (http://www.marketfolly.com/2011/01/2010-hedge-fund-returns-performance.html).
New Positions
We'll start with the newest additions to JANA's portfolio as they fall in the special situations category. They like these companies now that they are considering value-maximizing moves.
Cablevision (CVC): This cable company caught their eye due to the announced spin-off of Rainbow Media (cable networks that include the hit show Mad Men). This tax-free transaction will take place by the middle of the year and JANA likes that this spin-off will leave a more pure-play cable company that could be a consolidation target.
Market Folly (http://www.marketfolly.com) readers will recall that many hedge funds owned CVC earlier last year (including JANA) due to the company's spin-off of Madison Square Garden (MSG) in a value-unlocking event. We wouldn't be surprised to see more event-driven/catalyst aficionados purchasing this name for the same reasons JANA has.
Williams Companies (WMB): Rosenstein's hedge fund has previously owned this stock before and returned due to the CEO's retirement in October 2010. JANA says, "We expect that WMB will find a way to separate their large exploration and production portfolio from their pipeline assets."
Renault SA (RNO FP): JANA is looking for the company to set higher free cash objectives and to resume dividend payments.
Embedded below is JANA Partners' year-end 2010 letter where you'll also find updates on their stakes in TNT NV (TNTTY), Charles River Labs (CRL), and Convergys (CVG). Email readers come to the site (http://www.marketfolly.com) to read the letter:
For other hedge fund letters, we've started to post a bunch of other prominent manager commentary including:
- David Einhorn's Greenlight Capital letter (http://www.marketfolly.com/2011/01/david-einhorn-greenlight-capitals-2010.html)
- John Paulson's year-end letter (http://www.marketfolly.com/2011/02/john-paulsons-year-end-letter.html) to investors
- Summary of Kleinheinz Capital's letter (http://www.marketfolly.com/2011/01/kleinheinz-capital-inflation-is-biggest.html)
- Dan Arbess & Xerion Fund's 2011 strategy (http://www.marketfolly.com/2011/01/dan-arbess-xerion-fund-2011-investment.html)https://blogger.googleusercontent.com/tracker/5975869446501122263-1185184020938614527?l=www.marketfolly.com
http://feeds.feedburner.com/~ff/MarketFolly?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/MarketFolly?d=7Q72WNTAKBA (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:7Q72WNTAKBA) http://feeds.feedburner.com/~ff/MarketFolly?i=0JqMKwwhhgo:nuz-qZfAab8:gIN9vFwOqvQ (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:gIN9vFwOqvQ) http://feeds.feedburner.com/~ff/MarketFolly?i=0JqMKwwhhgo:nuz-qZfAab8:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:V_sGLiPBpWU)
http://feeds.feedburner.com/~r/MarketFolly/~4/0JqMKwwhhgo
More... (http://feedproxy.google.com/~r/MarketFolly/~3/0JqMKwwhhgo/jana-partners-2010-letter-new-positions.html)
New Positions
We'll start with the newest additions to JANA's portfolio as they fall in the special situations category. They like these companies now that they are considering value-maximizing moves.
Cablevision (CVC): This cable company caught their eye due to the announced spin-off of Rainbow Media (cable networks that include the hit show Mad Men). This tax-free transaction will take place by the middle of the year and JANA likes that this spin-off will leave a more pure-play cable company that could be a consolidation target.
Market Folly (http://www.marketfolly.com) readers will recall that many hedge funds owned CVC earlier last year (including JANA) due to the company's spin-off of Madison Square Garden (MSG) in a value-unlocking event. We wouldn't be surprised to see more event-driven/catalyst aficionados purchasing this name for the same reasons JANA has.
Williams Companies (WMB): Rosenstein's hedge fund has previously owned this stock before and returned due to the CEO's retirement in October 2010. JANA says, "We expect that WMB will find a way to separate their large exploration and production portfolio from their pipeline assets."
Renault SA (RNO FP): JANA is looking for the company to set higher free cash objectives and to resume dividend payments.
Embedded below is JANA Partners' year-end 2010 letter where you'll also find updates on their stakes in TNT NV (TNTTY), Charles River Labs (CRL), and Convergys (CVG). Email readers come to the site (http://www.marketfolly.com) to read the letter:
For other hedge fund letters, we've started to post a bunch of other prominent manager commentary including:
- David Einhorn's Greenlight Capital letter (http://www.marketfolly.com/2011/01/david-einhorn-greenlight-capitals-2010.html)
- John Paulson's year-end letter (http://www.marketfolly.com/2011/02/john-paulsons-year-end-letter.html) to investors
- Summary of Kleinheinz Capital's letter (http://www.marketfolly.com/2011/01/kleinheinz-capital-inflation-is-biggest.html)
- Dan Arbess & Xerion Fund's 2011 strategy (http://www.marketfolly.com/2011/01/dan-arbess-xerion-fund-2011-investment.html)https://blogger.googleusercontent.com/tracker/5975869446501122263-1185184020938614527?l=www.marketfolly.com
http://feeds.feedburner.com/~ff/MarketFolly?d=yIl2AUoC8zA (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:yIl2AUoC8zA) http://feeds.feedburner.com/~ff/MarketFolly?d=7Q72WNTAKBA (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:7Q72WNTAKBA) http://feeds.feedburner.com/~ff/MarketFolly?i=0JqMKwwhhgo:nuz-qZfAab8:gIN9vFwOqvQ (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:gIN9vFwOqvQ) http://feeds.feedburner.com/~ff/MarketFolly?i=0JqMKwwhhgo:nuz-qZfAab8:V_sGLiPBpWU (http://feeds.feedburner.com/~ff/MarketFolly?a=0JqMKwwhhgo:nuz-qZfAab8:V_sGLiPBpWU)
http://feeds.feedburner.com/~r/MarketFolly/~4/0JqMKwwhhgo
More... (http://feedproxy.google.com/~r/MarketFolly/~3/0JqMKwwhhgo/jana-partners-2010-letter-new-positions.html)