Headquartered in New York City, JANA Partners LLC is a large hedge fund manager with nearly $2 billion in assets under management. The firm has eight financial advisors managing 12 pooled investment vehicles or funds. Identifying and purchasing undervalued securities are central components of the firm’s investment strategy.
Not everyone can qualify to invest with JANA Partners. Only accredited investors have access to hedge funds. If you aren’t considered a high net worth individual, you may still want to speak with a financial advisor in your area about how to invest your money.
JANA Partners Background
JANA Partners was founded in 2001 by Barry Rosenstein, who serves as the firm’s managing partner and co-portfolio manager. Rosenstein, who entered finance in 1984, is also a trustee of Brown University and the Rock and Roll Hall of Fame. Partners Scott Ostfeld, Kevin Galligan, David DiDomenico and Jennifer Fanjiang round out the firm’s executive team. JANA Partners works with both accredited investors and institutional investors.
JANA Partners Investment Philosophy
The firm’s long-only strategy, known as JANA Strategic Investment (JSI), targets a wide array of industries in North America and Western Europe with market capitalizations of at least $500 million. The firm’s strategy primarily focuses on shareholder engagement and effecting change in the companies in which it invests.
“As part of the JSI strategy, we seek to bring about change at companies in which we have invested by either working with management to effect change or, where management is unwilling to do so, pursuing a shareholder activist strategy,” the firm’s brochure states.
Largest Hedge Funds Managed by JANA Partners
JANA Strategic Investments Benchmark Master Fund, LP
AUM: $454,623,628
Minimum: $10 million
Beneficial Owners: 56
JM IV, LP
AUM: $351,471,583
Minimum: $0
Beneficial Owners: 3
JSI Benchmark SPV I, LP
AUM: $156,502,887
Minimum: $10 million
Beneficial Owners: 2
JANA Strategic Investment Fund V, LP
AUM: $139,862,095
Minimum: $0
Beneficial Owners: 2
JANA Special Situations Investments II, LLC
AUM: $17,607,460
Minimum: $0
Beneficial Owners: 1
Fees at JANA Partners
The firm’s management and performance-based fees vary by fund. JSI funds are subject to an annual management fee equal to 1% of an investor’s capital commitment to the fund. Meanwhile, the management fee for JSI Benchmark funds is 1% of the net value of an investor’s assets in the fund.
Performance-based fees also differ depending on the type of fund. For JSI funds, JANA Partners takes 15% of proceeds that exceed the 8% preferred return. JSI Benchmark funds are charged either 25% of proceeds above the S&P 500 Total Return Index or 17.5% of profits that exceed a 4% rate of return.
What to Watch Out For
JANA Partners does not have any disclosures listed on its Form ADV.
It’s important to remember that only accredited investors can invest in hedge funds. To be an accredited investor, you must have at least $200,000 in earned income ($300,000 for couples) in each of the last two years or a net worth of at least $1 million, not including the value of your primary residence.
Becoming a Client of JANA Partners
If you fit the criteria to invest in hedge funds, you can contact JANA Partners through its website, by phone, or by emailing IR@janapartners.com.
All information is accurate at the time of this article.
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