Activist hedge fund Jana Partners has significantly restructured its portfolio, slashing its stake in Frontier Communications by 59% and fully exiting its positions in QuidelOrtho and BlackLine Systems, according to a report by Reuters.
The report cites the firm’s latest quarterly 13-F filing as revealing that it has reduced it’s holdings in Frontier Communications by selling 5.7 million shares during the third quarter. This move came shortly before Frontier shareholders approved the company’s $20bn sale to Verizon in September. The deal, which includes debt, aims to enhance Verizon’s fibre network.
Jana had been advocating for Frontier to explore a sale since late 2022, with the campaign coinciding with a strong performance in Frontier’s stock, which has surged 67.5% over the past year and saw a significant boost following the Verizon announcement.
The hedge fund also liquidated its positions in diagnostics company QuidelOrtho and enterprise software firm BlackLine, both of which it acquired earlier in 2023. Unlike its involvement with Frontier, Jana did not pursue public campaigns or push for strategic changes at either company.
Jana’s attention has now shifted to cybersecurity company Rapid7, where it is actively urging the company to explore a sale. The firm increased its stake in Rapid7 by 34.2% during the third quarter, bringing its total holding to 3.7 million shares.
