U.S. markets open in 7 hours 5 minutes
  • S&P Futures

    4,130.75
    +3.00 (+0.07%)
     
  • Dow Futures

    33,716.00
    +7.00 (+0.02%)
     
  • Nasdaq Futures

    13,754.50
    +4.25 (+0.03%)
     
  • Russell 2000 Futures

    2,240.20
    +11.90 (+0.53%)
     
  • Crude Oil

    61.89
    +0.46 (+0.75%)
     
  • Gold

    1,786.50
    +4.50 (+0.25%)
     
  • Silver

    26.18
    0.00 (0.00%)
     
  • EUR/USD

    1.2029
    +0.0012 (+0.10%)
     
  • 10-Yr Bond

    1.5540
    0.0000 (0.00%)
     
  • Vix

    18.71
    +1.21 (+6.91%)
     
  • GBP/USD

    1.3859
    +0.0016 (+0.12%)
     
  • USD/JPY

    107.9260
    -0.0340 (-0.03%)
     
  • BTC-USD

    48,935.41
    -5,292.30 (-9.76%)
     
  • CMC Crypto 200

    1,106.25
    -136.81 (-11.01%)
     
  • FTSE 100

    6,938.24
    +42.95 (+0.62%)
     
  • Nikkei 225

    29,020.63
    -167.54 (-0.57%)
     

Jana Partners' Top 4 Trades of the 4th Quarter

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
GuruFocus.com
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

- By James Li

Jana Partners (Trades, Portfolio), a New York-based investment firm, disclosed last week that its top four trades during the fourth quarter of 2020 featured new holdings in Laboratory Corp of America Holdings (NYSE:LH) and Treehouse Foods Inc. (NYSE:THS), a position boost in Encompass Health Corp. (NYSE:EHC) and the closure of its position in Calloway Golf Co. (NYSE:ELY).


Barry Rosenstein founded Jana in 2001, establishing the firm as an event-driven investment vehicle that seeks long-term capital in undervalued stocks in which a catalyst event unlocks value for shareholders. Jana invests in both long and short positions and sometimes also actively engages with company management.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

As of December 2020, the activist firm's $1.48 billion equity portfolio contains 11 stocks, with four new positions and a turnover ratio of 29%. The top three sectors in terms of weight are consumer defensive, technology and health care, representing 32.50%, 26.49% and 25.70% of the equity portfolio.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

Laboratory Corp of America

Jana purchased 811,661 shares of Laboratory Corp of America (NYSE:LH), allocating 11.18% of its equity portfolio to the position. Shares averaged $201.28 during the fourth quarter; the stock is fairly valued based on Thursday's price-to-GF Value ratio of 1.08.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

GuruFocus ranks the Burlington, North Carolina-based medical diagnostics and research company's profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, a four-star business predictability rank and an operating margin that is near a 10-year high of 21.09% and outperforms over 82.17% of global competitors.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

The Vanguard Health Care Fund (Trades, Portfolio) and John Rogers (Trades, Portfolio)' Ariel Investment also have holdings in Laboratory Corp of America.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

Treehouse Foods

Jana purchased 2,034,109 shares of Treehouse Foods (NYSE:THS), giving the position 5.85% equity portfolio weight. Shares averaged $40.66 during the fourth quarter; the stock is fairly valued based on Thursday's price-to-GF Value of 1.10.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

GuruFocus ranks the Oak Brook, Illinois-based packaged food manufacturer's financial strength 4 out of 10 on the back of interest coverage and debt ratios underperforming over 80% of global competitors, suggesting high financial leverage.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

Encompass Health

Having purchased 1,741,513 shares of Encompass Health (NYSE:EHC) during the third quarter of 2020, the firm added 851,601 shares during the fourth quarter, boosting the position 48.90% and the equity portfolio 4.77%. Shares averaged $74.08 during the fourth quarter.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

GuruFocus ranks the Birmingham, Alabama-based health care provider's profitability 8 out of 10 on several positive investing signs, which include a four-star business predictability rank and an operating margin that is outperforming over 80% of global competitors.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

Callaway Golf

Jana sold 2,943,183 shares of Callaway Golf (NYSE:ELY), knocking off 5.04% of the equity portfolio. Shares averaged $20.41 during the fourth quarter; based on GuruFocus estimates, the firm gained approximately 13.98% on the stock since initially buying shares during the second quarter of 2019.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

GuruFocus ranks the Carlsbad, California-based golf club manufacturer's profitability 6 out of 10: Although the company's operating margin outperforms over 65% of global competitors, returns are underperforming more than 70% of global travel and leisure companies.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

See also

Jana reported that it dissolved its HD Supply Holdings Inc. (NASDAQ:HDS) position, impacting its equity portfolio by -4.21%. The Home Depot Inc. (NYSE:HD) acquired the Atlanta-based industrial distribution company on Dec. 24.

Jana Partners' Top 4 Trades of the 4th Quarter
Jana Partners' Top 4 Trades of the 4th Quarter

Disclosure: No positions.

Read more here:

  • Top 4 Broadest-Owned Tech Stocks as of the 4th Quarter

  • Top 4 Holdings of Nelson Peltz's Trian Fund Management

  • Francis Chou's Top 4 Sells of the 4th Quarter



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.