According to Janus Capital’s 13F filing, its largest sale was Dollar Tree (DLTR) in 2Q16. It sold 4.4 million shares of the company. The firm still held 11.2 million DLTR shares with a market value of $1.1 billion as of June 30, 2016. Dollar Tree constituted 1.2% of the firm’s portfolio, while Janus Capital Management held 4.8% of Dollar Tree shares.
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As of June 30, 2016, Janus Capital had removed Yahoo! (YHOO) completely from its holdings. The firm had holdings of 0.23 million shares of Yahoo! worth $9.9 million. On Monday, July 25, 2016, Verizon Communications (VZ) announced that it would acquire Yahoo’s operating business for $4.8 billion in cash. It will be a significant move for Verizon, as it wants to spread its digital operation business and increase its potential on the market (SPY).
In February 2008, Yahoo! rejected Microsoft’s (MSFT) offer to buy the company for $31 per share. It was offering a 61% premium at that time. In January 2014, it again rejected an offer from Microsoft of $52 per share or $53 billion. It was offering a 30% premium at the time.
After this Verizon-Yahoo! deal, Janus Capital might not be bullish on the stock and may expect that this deal won’t benefit Yahoo!, as earlier it rejected good offers from Microsoft (MSFT). Janus’s decision to sell its entire Yahoo! holding signifies that the firm is no longer bullish on the stock.
In the next part of this series, we’ll analyze the change in the holdings of the Duquesne Family Office as of June 30, 2016.