| BOSTON, April 29
BOSTON, April 29 JANA Partners, the hedge fund
founded by activist investor Barry Rosenstein, will stop
accepting new money into its $4.7 billion Nirvana funds on May
1, and may limit capital into other portfolios, according to a
letter to investors.
Several other hedge funds have also curbed inflows or
returned money because of a lack of clear investment
opportunities at a time when demand for hedge funds has been
"Given the significant growth in our capital base in recent
years it would be prudent to close our JANA Nirvana funds to
outside investments," JANA Partners said in its quarterly letter
seen by Reuters on Tuesday.
"We will also continue to monitor the capital base of our
JANA Partners funds, which may close as well in the near
future," the letter said.
JANA Nirvana funds, launched in 2007, has some overlap with
the firm's 13-year-old JANA Partners funds, which include an
onshore and offshore portfolios, but generally has fewer
JANA became the latest hedge fund to limit its size. Daniel
Loeb's Third Point, Highfields Capital and Baupost Group all
returned money to clients last year. Some hedge fund managers
have privately told investors they were concerned about finding
But for investors, including pension funds, JANA's decision
illustrated how difficult it has become to place money with some
of the industry's best performers.
JANA Partners flagship funds have returned an average 13.9
percent since its launch in 2001.
In the letter, the firm said it bought shares in pharmacy
chain Walgreen Co and aircraft leasing finance business
AerCap Holdings NV during the first quarter of 2014.
JANA along with investors Corvex and Och-Ziff Capital
Management Group LLC have pressured Walgreen to move its
headquarters to Europe after its takeover of Swiss-based
Alliance Boots, to take advantage of lower tax rates there.
JANA praised some recent executive moves at Walgreen and
said the company can save more than the $1 billion in cost cuts
it promised at the time of the merger.
"Beyond cost cuts, we see interesting opportunities for the
combined companies to grow internationally through M&A," the
firm said in the letter. Walgreen stock has climbed 16.5 percent
During the first quarter the JANA Master Fund rose 1.7
percent, keeping pace with the Standard & Poor's 500 Total
Return Index, which climbed 1.8 percent.
(Reporting by Svea Herbst-Bayliss; Editing by Richard
Valdmanis; and Jeffrey Benkoe)