3 Best Stocks to Buy According to Activist JANA Partners

Page 1 of 3

This article discusses the top 3 stock picks of billionaire Billionaire Barry Rosenstein’s JANA Partners at the end of June 2022. To know more about Mr Rosenstein’s journey, JANA Partners’ activist stakes, and recent changes the fund made to its portfolio, please check out 7 Best Stocks to Buy According to Billionaire Barry Rosenstein’s JANA Partners.

3. Laboratory Corp. of America Holdings (NYSE:LH)

JANA Partners’ Stake Value: $198,727,000

Percentage of JANA Partners’ 13F Portfolio: 17.18%       

Number of Hedge Fund Holders: 39

Apart from New Relic Inc (NYSE:NEWR), Laboratory Corp. of America Holdings (NYSE:LH) was another stock in which JANA Partners went for a significant increase in its holdings – by 88% to 847,958 shares – during Q2. JANA had disclosed a stake in the diagnostics and drug development company for the first time in the last quarter of 2020. After initiating the stake, the fund launched its activist campaign, which included nominating several directors, including industry veteran Mac Crawford to the company’s board.

The activist campaign launched by JANA seems to have succeeded quickly, with Laboratory Corp. of America Holdings (NYSE:LH) announcing a $2.5 billion stock buy-back and future dividend payments to shareholders in December last year. Furthermore, in July this year, the company also announced its plans to spin off its clinical development business into an independent, publicly-traded contract research organisation (CRO). This development can be attributed to Laboratory Corp. of America Holdings (NYSE:LH) launching a strategic review in March 2021 after being pushed for it by JANA Partners.

Page 1 of 3