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

1. Macy’s, Inc. (NYSE:M)

Former Value of JANA Partners‘ 13F Position: $19.92 million

Number of Hedge Fund Shareholders (as of March 31): 42

Closing out the list is the other stock Rosenstein gave up on during Q1, Macy’s, Inc. (NYSE:M). Rosenstein began unloading the position in Q4, just one quarter after taking a new stake in the iconic department store chain. He unloaded 84% of his position in Q4 and sold off the remaining 760,780 shares in the first quarter.

Shortly after amassing a position of over 4 million shares, Rosenstein urged Macy’s, Inc. (NYSE:M) to follow Saks’ lead and spin off its e-commerce business, suggesting the company’s stock price could double if it did. Following consultations with Alix Partners, the same firm that advised on the aforementioned deal, Macy’s decided in February that it makes more sense for it to remain a fully integrated company. It appears that caused Rosenstein to head for the exits.

Macy’s, Inc. (NYSE:M)’s latest quarterly results do suggest the company is building positive momentum. Macy’s grew sales by 13.6% in the first quarter, hitting $5.35 billion, and has successfully expanded its gross margin by 1.4 percentage points over the last three years, reaching 39.6% on that front in the first quarter. Maintaining a tighter inventory has allowed Macy’s to reduce the need for discounting, which has weighed on its margins in the past, which it’s accomplished without hindering the company’s sales growth.

For more on the latest trades made by some of the biggest hedge fund managers in the world, check out 10 Blue Chip Stocks to Buy According to Mario Gabelli and Bill Gates’ 2022 Portfolio: 10 Value Stock Picks.

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