As we continue to analyze major hedge funds’ 13F filings, we came across an interesting portfolio: that of Trian Fund Management. The hedge fund managed by Nelson Peltz disclosed 11 equity positions, with a market value of approximately $6.79 billion. The second quarter didn’t witness any new stock purchases, but it did see Mr. Pelz increase his stakes in four of the fund’s preexisting positions, and sell out of one holding. In this article we will take a look at some of Trian’s most interesting moves for the second quarter, in order to elucidate if any of them deserve further research.
For the sixth consecutive quarter, the fund’s top 3 positions remained unchanged in rank. The largest bet continues to be placed on Mondelez International Inc (NASDAQ:MDLZ), a $60.8 billion market cap manufacturer of confectionery products. After acquiring 3,861 shares over the second quarter, the fund owns 41.74 million shares of Mondelez International Inc (NASDAQ:MDLZ), worth more than $1.56 billion, which account for roughly 23% of its equity portfolio.
This position makes of Trian the largest hedge fund shareholder at Mondelez International Inc (NASDAQ:MDLZ), trailed by Mason Hawkins’ Southeastern Asset Management, which disclosed ownership of 31.66 million shares, worth $1.19 billion.
PepsiCo, Inc. (NYSE:PEP) also saw Mr. Pelz’s fund boost his exposure between April 1 and June 30. The fund now owns 12.93 million shares of the $139 billion market cap food, snack and beverage company, with a market value of more than $1.15 billion.
PepsiCo, Inc. (NYSE:PEP) recently raised its 2014 EPS guidance, and now projects an 8% increase in EPS – up from the previously expected 7%. For the second quarter, the company posted organic revenue growth of 3.6%, and core currency-adjusted EPS growth of 9%. In addition, the company has also declared a quarterly dividend of $0.655 per share of Common Stock.
Another major hedge fund betting on PepsiCo, Inc. (NYSE:PEP) is Donald Yacktman’s Yacktman Asset Management, which declared ownership of 31.51 million shares of the company, worth roughly $2.8 billion.
On the opposite sidewalk, Trian’s third largest equity position, Ingersoll-Rand PLC (NYSE:IR), was slightly trimmed over the quarter. Following the sale of 1,144 shares, the fund owns 11.97 million shares of common stock, worth roughly $748 million.
Once again, Trian stands as the largest hedge fund shareholder of record at the company, trailed by Ralph V. Whitworth’s Relational Investors, which owns 7.4 million shares of Ingersoll-Rand PLC (NYSE:IR), and Daniel S. Och’s Oz Management, which holds 7.32 million shares. All three funds diminished their stakes in the company over the quarter.
There was, however, one company that felt Peltz’s bearishness: GNC Holdings Inc (NYSE:GNC). This $3.3 billion market cap specialty retailer of health and wellness products saw Trian Fund Management close out its 359,254 shares position over the second quarter.
GNC Holdings Inc (NYSE:GNC) witnessed the departure of several other major hedge funds over the quarter. Amongst them we should highlight John Croghan and Richard Fradin’s Rail-Splitter Capital Management, which held 207,400 shares by the end of the first quarter.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.