Billionaire Rosenstein’s Large-Cap Stock Picks and Why You Should Pay Attention

During the first quarter JANA Partners sold off 6% of its stake in the Irish-headquartered pharmaceutical giant Actavis PLC (NYSE:ACT), leaving it with a stake of 1.62 million shares with a market value of $482.70 million. Actavis has returned a strong 20% this year despite legal problems it is facing related to its Alzheimer’s drug-switching, which has been accused of violating anti-trust laws. Nonetheless, J.P Morgan states that there is still upside of 25% in the company’s shares over the next year. This should be driven in part by the strong position Actavis PLC (NYSE:ACT) has in generics, especially after the acquisition of Auden Mckenzie Holdings Limited. With this acquisition Actavis will maintain the number one position in the U.K market for generic healthcare while being third in other branded pharmaceutical products. Other large stakeholders in Actavis PLC (NYSE:ACT) among the funds we track are Andreas Halvorsen‘s Viking Global, and Paulson & Co.

JANA Partners has also decreased its stake in Montreal-based Valeant Pharmaceuticals Intl Inc (NYSE:VRX) by 64% to a total of 1.57 million shares with a value of $312.12 million. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has had a great 2015 thus far, returning a robust 66%, the highest in both the S&P and Canadian TSX. Currenty the second-largest company in Canada in terms of market capitalization behind only Royal Bank of Canada (NYSE:RY), Valeant is aiming to grow even larger, a task that can be accomplished through acquisitions, according to analysts. A possible takeover candidate for the Canadian pharmaceutical giant is Egyptian company Amoun Pharmaceutical Co. Valeant is also planning an expansion into Asia which could greatly push its growth. Bill Ackman’s Pershing Square, and the quant fund D E Shaw are among the top shareholders of Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

Disclosure: None