Activist Billionaire Barry Rosenstein’s Two New Picks: 2015 Q3 Investor Letter Highlights

Allergan PLC (NYSE:AGN) represents one of JANA’s passive holdings, the fund owning 1.61 million shares as of the end of June. Rosenstein has been bullish on Allergan since 2013 (when it was called Actavis) and the company has made several important steps toward per-share value growth, such as the acquisition of Forest Laboratories and Allergan and the sale of its generics business to Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). The investor believes that the company is on a path to become one of the leaders among branded pharma companies, which is why in September, JANA swapped its Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stake for an increased position in Allergan. Many of Rosenstein’s peers seem to share the same view on Allergan PLC (NYSE:AGN), since the company ranked as the most popular among the funds we track, with 151 funds holding stakes as of the end of June. In the current round of 13F filings, Clifford Fox’s Columbus Circle Investors reported holding 836,352 shares of Allergan PLC (NYSE:AGN) as of September 30.

Walgreens Boots Alliance Inc (NASDAQ:WBA) is another healthcare pick of JANA Partners, in which it reported a position containing 13.75 million shares as of the end of June. In the letter, the investor praised Walgreens’ plans to acquire Rite Aid Corporation (NYSE:RAD), which will strengthen Walgreens Boots Alliance Inc (NASDAQ:WBA)’s position in the market and also carries some attractive financial metrics, with $1.0 billion in synergies. Barry Rosenstein also serves on Walgreens Boots Alliance Inc (NASDAQ:WBA)’s Board of Directors and will support the company’s management with its plans to increase shareholder value.

QUALCOMM, Inc. (NASDAQ:QCOM) ranked on the second spot in JANA’s 13F portfolio at the end of June, the fund holding 28.82 million shares of the company. Rosenstein believes that Qualcomm is much better positioned than its semiconductor peers, trading at less than 10-times earnings, excluding cash, below its industry peers. Therefore, the stock carries a significant intrinsic value and the Strategic Realignment Plan that is currently in process should further increase the value of the stock, bringing more profits to QUALCOMM, Inc. (NASDAQ:QCOM)’s shareholders. Aside from JANA Partners, eight other funds managed by or affiliated with billionaire investors held shares of QUALCOMM, Inc. (NASDAQ:QCOM) at the end of June.

Disclosure: None