Reuters/ Rick Wilking Barry Rosenstein.
Reuters/ Rick WilkingBarry Rosenstein.
Hedge fund manager Barry Rosenstein’s Jana Partners most likely made a killing on an investment in a company that Warren Buffett just acquired in a $37.2 billion megadeal.
According to Jana’s 13F regulatory filing, the fund purchased 2,471,385 shares of Precision Castparts (PCP) in the second quarter ended June 30.
On Monday, Buffett’s Berkshire Hathaway announced it was buying Precision Castparts in a deal that would give Precision Castparts shareholders $235 per share in cash — an approximately 20% premium to the stock’s closing price last Friday.
Hedge funds are required to disclose their long equity holdings in 13-F regulatory filings, which come out 45 days after the end of each quarter.
It is unclear how much Jana paid for the stake, or whether it is still holding it. It would be unusual for the fund to take such a large stake — Precision was Jana’s 11th-biggest equity holding at the end of the second quarter — and sell it in such short order.
The stock price hit a high of $220.22 in the second quarter, and it is now trading around $230, meaning that even if Jana bought at the second-quarter peak, it would be up more than 4.5%.
Talk about great timing!
Here’s a chart of the stock’s performance during the second-quarter time frame:
Here’s a chart of the stock’s performance from the beginning of the second quarter to Friday:
Article originally posted in Business Insider website.