Barry Rosenstein‘s Jana Partners, a hedge fund, has vacated its position in Civeo, as reported in a filing on New Years Eve. Civeo has been a troubled investment for Jana as well as David Einhorn‘s Greenlight Capital, and the dramatic drop in oil prices has only added insult to injury. Greenlight and Jana teamed up to oversee the de-merger of Civeo from Oil States International, but when Civeo was unable to become a REIT following the spin off because of difficulties over a $300 million one-time tax to set up the structure, things started to unravel. Civeo’s shares fell 50%, and Greenlight had a 9% stake in the company.
Since the spin off from its parent company, Civeo is down 80%. Jana sold 12 million of its shares at under $4 each. Recently Civeo cut its 2015 guidance, said vacancy rate in its lodgings for oil service companies would be around 50%, it has suspended its dividend, and will have to dramatically cut its work force.
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Rosenstein’s most recent move was to place three members on the board, but it looks like he has given up on Civeo. Despite the disappointment with this holding, Jana had a pretty good year, with its overseeing the merger between Walgreen and Alliance Boots.
