Activist hedge fund JANA Partners fund returns 31% in 2023 -investor
By Svea Herbst-Bayliss
Jan 16 (Reuters) - Activist investor JANA Partners LLC, whose efforts over the years to push for change at companies include Whole Foods and Frontier Communications, returned 31% last year, an investor in the fund said.
The Benchmark Series A fund's double-digit gain in 2023 follows a small loss in 2022 and marks the fourth time in five years the fund beat the S&P 500.
Last year's returns were fueled by Freshpet, with four new directors added to the board amid JANA's involvement. Returns were also boosted by investments in software company New Relic, which was sold to a private equity firm after Jana joined the board, and broadband provider Frontier Communications, where Jana is calling for a review of alternatives including a potential sale.
A JANA representative declined to comment.
In 2019, JANA closed its event-driven funds to focus exclusively on activism and has relied on partnering with top industry executives to help drive returns.
The firm often tries to stay out of the limelight and offer guidance and suggestions to target companies even if does not have a board seat.
"JANA has been a valuable partner to management and the Board of FIS in helping to accelerate change and unlock long-term shareholder value," Stephanie Ferris, CEO of financial products and services company Fidelity National Information Services Inc told Reuters.
The strategy has paid off. The Benchmark fund returned an average 21.5% a year over the last five years, topping the S&P 500's annualized return of 15.7% and the Russell 2000's annualized return of 10%. (Reporting by Svea Herbst-Bayliss in Rhode Island; Editing by Leslie Adler)
