Fields Of Gold? Jana Seeks New Money, Allies With Impact Hedge Fund | 5/14/2014 | Staff
Kota79Kota79 (Posted by) Level 4
BOSTON (Reuters) – Wall Street investor Barry Rosenstein’s new impact investing fund aimed at serving environmental and social causes could, if he plays his cards right, enhance his traditional business of pushing companies to boost earnings.

The founder of JANA Partners has tapped British musician and activist Sting to sit on the new fund’s advisory board and burnish his credentials with green and socially conscious investors he hopes will pledge at least $1 billion.

Amount - Fraction - Billions - Jana - Assets

That amount is a fraction of the billions that have been pulled from Jana since 2015. Its assets have shrunk by more than half to $5 billion since then, as hedge fund investors fled to cheaper, passive products. Still, it gives him an important foothold in the growing arena of “responsible investing”.

Industry watchers said Rosenstein could forge more alliances with institutional investors that could carry over to Jana’s main business: pushing companies to make financial changes that often include recapitalizing or restructuring the business.

Game - Fund - Hedge - Fund - Industry

“There is a longer game here than just this one fund,” said a hedge fund industry advisor who is not permitted to speak publicly about individual hedge fund firms. “The new fund will create a bridge with other institutional investors which Jana may need in its future activism.”

People familiar with the fundraising say commitments have already been made and interest is high. The fund will not be a typical hedge fund product, people familiar with the matter say, noting the fees are expected to be lower.

Jana - Foray - Investments - Month - Apple

Jana made its first foray into socially minded investments this month, pressuring Apple to give parents more control over the setup options of their children’s iPhones. The fund partnered with CalSTRS, the largest U.S. public sector teachers’ pension fund and one that is increasingly emphasizing social responsibility in its bets.

Calstrs does not invest with Jana but with $222 billion in...
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