Lamb Weston Holdings' Story: Who Is Left Holding The Bag?

By Alex Gavrish, Etalon Investment Research | Author of "Story Investing"

Activist investor sold a major part of shares received in the spin-off of Lamb Weston Holdings Inc by Conagra Brands Inc and replaced part of the holding with call options

Jana Partners, an activist hedge fund managed by Barry Rosenstein, recently disclosed its portfolio in a quarterly report filed with the SEC. Its seemingly "new" position in shares of Lamb Weston Holdings Inc attracted out attention.

We wrote about Lamb Weston before the spin-off in October of 2016, and warned investors to exercise caution as valuation is not especially attractive and free cash flow might suffer as a result of taking on new debt. So far, the shares performed reasonably well, rising 17% percent since...