Activist hedge fund manager JANA Partners will close its onshore and offshore JANA Nirvana funds to new investors on April 1, according to the company's year-in-review investor letter, obtained by Pensions & Investments.
The firm managed about $8 billion at the beginning of the year, according to the letter from JANA's management, led by Barry Rosenstein, founder and managing partner. Given the firm's size and “the pipeline of subscriptions we anticipate in the first quarter,” the Nirvana funds will be closed to preserve investor value, the letter, dated Thursday, said. The firm's flagship JANA (Partners) Master Fund also might be closed to investors “at some point in the future, depending on the opportunity set,” Mr. Rosenstein and his colleagues said.
Launched in April 2007, the Nirvana funds are the firm's more concentrated versions of the JANA Master Fund. The funds co-invest with institutional investors in “select ideas” from the flagship fund in fewer positions that are about 1.5 times or larger than those in the Master Fund, according to the investor letter.
The Nirvana strategy may also use higher percentages of long and net exposure than are used in the flagship fund. Like the original hedge fund's investment approach, Nirvana's portfolio managers may take activist positions in certain companies to boost returns.
The Nirvana funds totaled $3.9 billion as of Jan. 1.