Barry Rosenstein’s JANA Partners Added These Five Stocks to Its Portfolio in Q2

Barry Rosenstein‘s JANA Partners is going through a rough period marked by its worst performance since it was launched in 2001. JANA’s main fund has posted negative returns for 12 out of the last 19 months and has not only underperformed the S&P 500, but also many of its peers. The fund currently has an equity portfolio worth $5.85 billion as of the end of June, slightly higher compared to $5.27 billion reported a year earlier.

In this article, let’s take look at the five new positions, which JANA Partners added to its equity portfolio during the second quarter, and which include Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE), Expedia Inc (NASDAQ:EXPE), Harris Corporation (NYSE:HRS), Pinnacle Foods Inc (NYSE:PF), and Willis Towers Watson PLC (NASDAQ:WLTW).

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Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE)

– Shares Owned by Jana Partners (as of June 30): 8.18 million

– Value of Jana Partners holding (as of June 30): $292.11 million

JANA added Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) to its equity portfolio during the second quarter, having bought 8.18 million shares worth $292.11 million. Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) is one of the few consumer-related stock covered by Susquehanna, which considers that Coca-Cola European Partners, along with Sodastream International Ltd (NASDAQ:SODA) and Mondelez International Inc (NASDAQ:MDLZ), has the biggest downside risk from exposure to the Euro and the British Pound. Susquehanna also stated that currency risk makes Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) an unattractive bet compared to Mondelez. A total of 40 funds in our database held long positions in Coca-Cola European Partners plc Ordinary Shares (NYSE:CCE) worth $1.55 billion in aggregate, during the second quarter.

Expedia Inc (NASDAQ:EXPE)

– Shares Owned by Jana Partners (as of June 30): 2.07 million

– Value of Jana Partners holding (as of June 30): $219.96 million

In Expedia Inc (NASDAQ:EXPE), the fund acquired 2.07 million shares worth $219.96 million during second quarter. Shares of Expedia Inc (NASDAQ:EXPE) are down by 13.04% since the beginning of the year. For the second quarter, Expedia Inc (NASDAQ:EXPE) reported revenue of around $2.2 billion, which was $50 million lower than expected, while EPS of $0.83 topped the consensus estimate of $0.78. Out of the total funds tracked by our team, 67 funds held long positions in Expedia with total value of $3.87 billion at the end of June.

On the next page, we will look at Harris Corporation (NYSE:HRS), Pinnacle Foods Inc (NYSE:PF), and Willis Towers Watson PLC (NASDAQ:WLTW).

Harris Corporation (NYSE:HRS)

– Shares Owned by Jana Partners (as of June 30): 2.2 million

– Value of Jana Partners holding (as of June 30): $183.57 million

Technology solution provider Harris Corporation (NYSE:HRS) was the third stock, in which JANA initiated a stake during the second quarter. The fund acquired 2.2 million shares worth $183.57 million during the second quarter. The company reported fiscal fourth quarter revenue of some $1.9 billion, missing estimates by $40 million, but EPS of $1.45 beat expectations marginally, by $0.01. Harris also provided 2017 EPS guidance in the range of $5.70 to $5.90, while the revenue is expected to be in between $7.11 billion and $7.33 billion. Harris Corporation (NYSE:HRS)’s stock is up by 6% year-to-date. A total of 21 funds in our database held shares of Harris Corporation (NYSE:HRS) at the end of June.

Pinnacle Foods Inc (NYSE:PF)

– Shares Owned by Jana Partners (as of June 30): 3.93 million

– Value of Jana Partners holding (as of June 30): $181.74 million

Branded food maker and distributor Pinnacle Foods Inc (NYSE:PF) represents another new position in JANA’s equity portfolio. The fund acquired 3.93 million shares whose value at the end of second quarter was $181.74 million. The company recently has announced that it will be closing an Evol plant in Boulder, Colorado, due to its small size and lack of required capacity. Instead, Pinnacle Foods will be shifting to a new facility in Fayetteville, Arkansas. The company’s Evol brand includes frozen meals and snacks, which Pinnacle Foods Inc (NYSE:PF) acquired at the beginning of this year. The number of funds from our database with holdings in Pinnacle Foods declined to 33 at the end of the second quarter, from 36 a quarter earlier.

Willis Towers Watson PLC (NASDAQ:WLTW)

– Shares Owned by Jana Partners (as of June 30): 1.32 million

– Value of Jana Partners holding (as of June 30): $163.90 million

In Willis Towers Watson PLC (NASDAQ:WLTW), a global advisory, broking and solutions company, JANA Partners acquired 1.32 million shares valued at $163.90 million at the end of the second quarter. Willis Towers Watson PLC (NASDAQ:WLTW) reported second-quarter revenue of $1.98 billion, which missed analyst estimates by $10 million, while EPS of $1.66 topped the consensus estimate of $1.65. The company expects revenue growth of 7% in 2016, while diluted EPS is estimated between $2.48 and $2.68. Out of the total funds tracked by our team, 39 funds hold long position in Willis Towers Watson with a total value of $3.43 billion as of the end of June.

Disclosure: None