4 Stocks Billionaire Barry Rosenstein Loves (And 1 He’s Given Up On)

2. Zendesk Inc (NYSE:ZEN)

Value of JANA Partners‘ 13F Position: $373 million

Number of Hedge Fund Shareholders (as of March 31): 66

Zendesk Inc (NYSE:ZEN) is Barry Rosenstein’s top pick after the activist money manager raised his stake in the customer service platform by 30% during Q1. Other hedge funds also liked what they saw from ZEN in Q1, as there was a 16% quarter-over-quarter increase in the number of funds long ZEN.

Zendesk Inc (NYSE:ZEN) and JANA have not always been on the best of terms, engaging in a lengthy public dispute that saw JANA criticize the firm and its leadership on multiple occasions. Rosenstein was highly critical of Zendesk’s attempted acquisition of Momentiv, calling it “ill-conceived and value destructive”. Other shareholders agreed with JANA, as they voted against the acquisition in overwhelming numbers.

JANA sought to remake Zendesk Inc (NYSE:ZEN)’s leadership team, or if that failed, believed the company should at least be sold. When Zendesk was unable to find a suitor earlier this month, the company admitted defeat and entered into settlement talks with JANA. CEO Mikkel Svane could be on the chopping block according to reports. Removing board member Carl Bass is another potential goal of JANA’s that is reportedly being pursued.