market folly

Barry Rosenstein's hedge fund JANA Partners has been quite active submitting SEC filings as of late.  The activist investor has revealed their latest target: QEP Resources (QEP).  Per a 13D filed with the SEC, JANA has revealed a 7.5% ownership stake with 13,500,000 shares.

This marks a 55% increase in the number of shares they own since the end of the second quarter.  The filing was made due to activity on October 11th.

JANA was out buying in late August, sporadically throughout September, and then all throughout October at prices ranging from $27.68 to $31.46 and are now the largest institutional shareholder.  However, they've owned QEP shares for over a year.

JANA's Letter to QEP's Board

Rosenstein penned a letter to QEP's board, noting that the company needs to unlock the value of its midstream business.  JANA also wants to see bolt-on M&A and organic project development for growth.  Additionally, the hedge fund calls for more board members and management with proven Midstream experience and to align management incentives.  Lastly, JANA is looking for the company to return capital to shareholders.

Embedded below is JANA Partners' letter to QEP Resources:




For more on this hedge fund, head to a recent interview with JANA's Barry Rosenstein.