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Jana Partners Sells Twitter, Alphabet, Priceline

- By Tiziano Frateschi

Jana Partners LLC is an investment manager specializing in event-driven investing founded in 2001 by Barry Rosenstein, Jana's managing partner and co-portfolio manager. During the fourth quarter the guru sold shares in the following stocks:

The investor exited its position in Coca-Cola European Partners PLC (CCE) with an impact of -3.6% on the portfolio.


The company markets, produces and distributes nonalcoholic beverages. It offers various beverages including regular, zero and low-calorie energy and sports drinks, waters, juices, fruit drinks, coffees and teas. Third-quarter revenue was 3.0 billion euros ($3.2 billion), 82.5% up versus prior year and cost of sales were 1.8 billion euros, up 80.0% from the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The return on equity (ROE) of 22.56% and return on assets (ROA) of 5.95% are outperforming 58% of the companies in the Global Beverages - Soft Drinks industry. Financial strength has a rating of 5 out of 10. The cash to debt of 0.05 is below the industry median of 0.72.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.37% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.88%, Larry Robbins (Trades, Portfolio) with 0.42%, Jim Simons (Trades, Portfolio) with 0.25% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The guru closed its position in Marathon Petroleum Corp. (MPC) with an impact of -3.11% on the portfolio.

The company is a supplier of gasoline and distillates to resellers and consumers. Its refining, marketing and transportation operations are concentrated in the Midwest, Gulf Coast and Southeast regions of the U.S. Fourth-quarter earnings were $227 million, or 43 cents per diluted share, compared with $187 million, or 35 cents per diluted share, in the fourth quarter of a year before, and the company announced 2017 capital investment plan focused on growth and margin-enhancing investments.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 8.81% and ROA of 2.71% are underperforming 61% of the companies in the Global Oil and Gas Refining and Marketing industry. Financial strength has a rating of 5 out of 10. The cash to debt of 0.08 is below the industry median of 0.48.

Paul Singer (Trades, Portfolio) is the largest shareholder among the gurus with 1.17% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.57%, Pioneer Investments (Trades, Portfolio) with 0.11%, First Eagle Investment with 0.11%, Simons with 0.06%, Bernard Horn (Trades, Portfolio) with 0.02% and Manning & Napier Advisors Inc. with 0.01%.

The guru exited its holding of The Priceline Group Inc. (PCLN). The trade had an impact of -2.72% on the portfolio.

Priceline Group is a provider of online travel and travel-related reservation and search services. The company offers consumers accommodation reservations through its Booking.com, priceline.com and agoda.com brands. Fourth quarter gross profit of $2.3 billion increased 21% from the prior year, and non-GAAP net income increased 31% versus the prior year.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 22.84% and ROA of 11.20% are outperforming 87% of the companies in the Global Leisure industry. Financial strength has a rating of 6 out of 10. The cash to debt of 0.60 is below the industry median of 0.75.

The largest shareholder among the gurus is Chase Coleman (Trades, Portfolio) with 2.55% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 2.55%, Dodge & Cox with 1.63%, Lee Ainslie (Trades, Portfolio) with 0.65%, Steve Mandel (Trades, Portfolio) with 0.62%, Spiros Segalas (Trades, Portfolio) with 0.6%, Manning & Napier Advisors with 0.52% and David Rolfe (Trades, Portfolio) with 0.38%.

The guru exited its stake in Alphabet Inc. Class C (GOOG) with an impact of -2.67% on the portfolio.

The company through its subsidiary Google Inc. is engaged in improving the ways people connect with information and products including Search, Android, YouTube, Apps, Maps and Ads. It also produces internet-connected home devices and provides internet services. During the last quarter revenue grew 22% year on year and 24% on a constant currency basis, and GAAP operating margin increased 25%. The company reported a 33% increase for non-GAAP operating margin.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 15.10% and ROA of 12.50% are outperforming 72% of the companies in the Global Internet Content and Information industry. Financial strength has a rating of 9 out of 10 with a cash to debt of 21.94 that is above the industry median of 4.48.

Dodge & Cox is the largest shareholder among the gurus with 0.45% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.35%, Chris Davis (Trades, Portfolio) with 0.19%, Andreas Halvorsen (Trades, Portfolio) with 0.16%, Mason Hawkins (Trades, Portfolio) with 0.14% and Sands with 0.12%.

The guru closed its position in Mondelez International Inc. Class A (MDLZ) with an impact of -2.54% on the portfolio.

The company manufactures confectionery products. It produces packaged food products including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. Fourth-quarter net revenues decreased 8.1% year over year and gross profit margin of 38.2% decreased 30 basis points. The company reported a growth of 15.1% points for operating income margin.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of 6.10% and ROA of 2.63% are underperforming 58% of the companies in the Global Confectioners industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.10 is below the industry median of 0.61.

The largest shareholder of the company among the gurus is Bill Ackman (Trades, Portfolio) with 1.67% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 0.21%, Simons with 0.1%, RS Investment Management (Trades, Portfolio) with 0.06%, Pioneer Investments with 0.06%, Warren Buffett (Trades, Portfolio) with 0.04%, Jerome Dodson (Trades, Portfolio) with 0.03% and George Soros (Trades, Portfolio) with 0.03%.

The investor closed its stake in Graphic Packaging Holding Co. (GPK) with an impact of -2.52% on the portfolio.

The company together with its subsidiaries is engaged in providing paper-based packaging solutions to food, beverage and other consumer products companies. The company is a producer of folding cartons in the U.S. Net sales increased 3.2% to $1.057 billion in the fourth quarter from $1.024 billion in the prior year period. EBITDA was $11.5 million lower than the fourth quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 20.91% and ROA of 4.96% are outperforming 57% of the companies in the Global Packaging and Containers industry. Financial strength has a rating of 5 out of 10. The cash to debt of 0.03 is below the industry median of 0.51.

The largest shareholder among the gurus is RS Investment Management with 1.0% of outstanding shares followed by First Eagle Investment with 0.93%, Jones with 0.36%, Steven Cohen (Trades, Portfolio) with 0.34%, Simons with 0.14% and Manning & Napier Advisors with 0.04%.

The guru exited its holding in Twitter Inc. (TWTR). The trade had an impact of -1.19% on the portfolio.

It is a platform for public self-expression and conversation in real time. It provides a way for people to stay informed about their interests, discover what is happening in their world and interact directly. During the fourth quarter the company reported 1% year-over-year growth for revenue and 11% increase for average daily active usage.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of -10.09% and ROA of -6.89% are underperforming 99.99% of the companies in the Global Internet Content and Information industry. Financial strength has a rating of 6 out of 10 with cash to debt of 2.24 is below the industry median of 4.48.

The largest shareholder among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.07% of outstanding shares followed by First Eagle Investment with 0.02%, Jones with 0.01% and RS Investment Management with 0.01%.

Disclosure: I do not own any shares of any stocks mentioned in tits article.

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This article first appeared on GuruFocus.