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Trian Partners and Raging Capital Management Reveal Their Latest Moves

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Nelson Peltz Trian Partners trimmed its stake in Family Dollar Stores, Inc. (NYSE:FDO) by more than 6 million shares. According to the 13D Form filed with the U.S. Securities and Exchange Commission on Tuesday, the investment firm now owns around 2.3 million Common Shares, which represent just a little over 2% of the company’s outstanding stock. Another important transaction took place at the beginning of the week, which saw William C. Martin’s Raging Capital Management disclose an amendment to its position in A. M. Castle & Co (NYSE:CAS). At the beginning of January, the investment firm initiated a new position in the company with the purchase of 3.4 million shares. However, according to the amended 13D filing, Mr. Martin’s firm now holds around 3.7 million Common Shares, representing 16% of the company’s outstanding stock. TRIAN PARTNERS

Trian Partners was founded by Nelson Peltz, Peter May, and Ed Garden in 2005 and is currently headquartered New York. The alternative investment management firm focuses primarily on investing in undervalued equities, often taking on an activist stake in underperforming companies. Whenever possible, the hedge fund seeks to engage with the board of directors, working together with management and making proposals intended to increase shareholder value. The firm managed by Mr. Peltz currently boasts an equity portfolio valued at around $9.4 billion, with a clear focus on companies belonging to the consumer goods, services, and financial industries. In its latest 13F filing, Trian Partners disclosed its top picks for the fourth quarter, revealing E I Du Pont De Nemours And Co (NYSE:DD), PepsiCo, Inc. (NYSE:PEP), and Mondelez International Inc (NASDAQ:MDLZ) as its largest holdings.

After reducing its exposure to Family Dollar Stores, Inc. (NYSE:FDO) by approximately 71% this week, the company no longer counts with Trian Partners as its largest institutional investor. This comes as no surprise, considering the announced merger with Dollar Tree, Inc. (NASDAQ: DLTR), which was approved by Family Dollar Stores, Inc. (NYSE:FDO) stockholders last week. As the company turns into a merger arbitrage play, hedge funds seeking to profit from the merger are keen on buying a great deal of shares, including the stake held by Trian Partners. Hence, Mr. Peltz’ firm is probably looking to cash in and invest its money elsewhere in order to earn higher returns.

Despite the large reduction in Trian Partners’ stake, Family Dollar Stores, Inc. (NYSE:FDO) still counts with the backing of several institutional investors. Although John Paulson’s Paulson & Co reduced its holdings in the company by 33% in the third quarter, it continues to boast a position amounting to 5.4 million shares. Daniel S. Och’s Oz Management also continues to hold Family Dollar Stores stock in its equity portfolio, after disclosing a new stake of 3.6 million shares in its latest 13F filing.

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