Jana Partners (Trades, Portfolio) LLC is an investment firm specializing in event driven investing. The firm was founded in 2001 by Barry Rosenstein, who currently serves as Jana’s managing partner and co-portfolio manager. Jana Partners (Trades, Portfolio) applies a fundamental value discipline to identify undervalued companies that have one of more specific catalysts to unlock value. The firm invests, long and short, in companies undergoing or expected to undergo change.
In the first quarter of 2016, Jana Partners (Trades, Portfolio) purchased 5,890,368 shares of Team Health Holdings Inc. (TMH, Financial).
Team Health Holdings was founded 37 years ago with a vision of developing the best teams of healthcare professionals. The company was originally founded to provide emergency department administrative and staffing services. Team Health is one of America's largest providers of hospital based clinical outsourcing in multiple departments, including anesthesia, hospital medicine and emergency medicine. The company serves approximately 800 civilian and military hospitals, clinics and physician groups in 47 states with a team of more than 8,600 affiliated healthcare professionals, including physicians, physician assistants, nurse practitioners, and nurses. Team Health recruits and contracts with healthcare professionals who then provide professional services within third party healthcare facilities.
Team Health Holdings has a market cap of $3.31 billion, a P/E ratio of 40.23, an enterprise value of $5.69 billion and a quick ratio of 1.23.
The stock price rose at an average annual rate of 40% since 2010 up until the market price peaked at $66.33 on July 13, 2015. Since the middle of July 2015, the company’s price has plummeted by $21.35 per share but this isn't necessarily a bad sign. The company was expanding their operations during this time as they purchased several additional businesses on top of the 28 companies they had already purchased since 2013.
Below is a Peter Lynch chart for Team Health Holdings Inc.
Jana Partners (Trades, Portfolio) is a firm that focuses on companies with one of more specific catalysts to unlock value. Team Health Holdings has a few catalysts that unlock value for investors.
- The company is trading below its intrinsic value.
- The company's average book value per share growth rate was 68.50% over the previous three years. This is a great sign for the company's intrinsic value increasing in the future.
- The company has been able to successfully acquire 35 businesses within the previous three years, while still earning $235.3 million in net revenues related to acquisitions completed in 2015.
Cheers to your investment success.
