Energy Transfer Equity LP (ETE), Liberty Interactive (Ventures group) (LVNTA), Endo International PLC (ENDP): JANA Partners’ Top Performers

Jana Partners, managed by Barry Rosenstein capped a brilliant 2013 in the equity markets finishing strongly after delivering returns that met expectations. The biggest contributors to the company’s brilliant performance for the year were, Energy Transfer Equity LP (NYSE:ETE), Endo International PLC (NASDAQ:ENDP) and Liberty Interactive (Ventures group) (NASDAQ:LVNTA). Looking back, the company pointed out that it undersized some positions that went on to overshoot price targets in one of the best years for averages.

Jana Partners’ enthusiastic team is now looking forward to 2014 fiscal year of which it promises to produce a more successful year in terms of trades at the back of strengthened process, core functions of research and portfolio construction. Jana Partners remains optimistic on U.S. GDP expanding even further in 2014, as the economy continues to face minimal headwinds.

Energy Transfer Equity LP (NYSE:ETE) was one of the top performers for the quarter and full year for Jana. Solid performance by the company follows ETE management doing all that was necessary consequently driving unit price returns of 88% for the year. Appreciation of Energy Transfer Equity LP (NYSE:ETE) in the fourth quarter was, on the other hand, ignited by the anticipated contract terms for the Lake Charles project.

When Jana Partners purchased Energy Transfer Equity LP (NYSE:ETE), it ascribed a $10-$20 of option for the lake Charles project  with the management of the company later outlining a plan to generate cash flow to unit holders of up to $900 million upon completion. At the current peer multiples, Lake Charles is valued at $55 a unit.

Liberty Interactive (Ventures group) (NASDAQ:LVNTA) was the second largest best performer for the quarter having been acquired in the third quarter of 2012. At the Time of acquisition, Jana Partners believed it was trading at a discount. The company’s shares appreciated after it was announced’ that there was going to be a split of Liberty Interactive (Ventures group) (NASDAQ:LVNTA)’s ownership of TRIP into a new equity. Going Forward Jana Partners expects the potential event to be a success.

Endo International PLC (NASDAQ:ENDP) was, on the other hand, the third largest contributor in terms of performance for the quarter having been added in January 2013. The appointment of a new CEO in the name of, Rajiv De Silva, has more than increased the prospects of Endo International PLC (NASDAQ:ENDP) performing even better considering he has proven track record having worked at Valeant Pharmaceuticals Intl Inc. (NYSE:VRX). The CEO has already overseen the purchase of the company’s $7 million stock and announced plans to grow shareholder value.

See the full letter below:

Jana-Partners-Letter

Disclosure: none