Why Jim Cramer is Listening to This Fund Manager

Jim Cramer has a popular CNBC show called “Mad Money,” and he has been known to track a number of stocks and a number of major money managers to get a read on the markets and what may be happening in coming months and years for certain companies. If certain managers make a move on a particular stock or a sector, Cramer tends to pay attention and shares the information with viewers.

On his show recently, Cramer spent a segment talking about fund manager Nelson Peltz,, who manages Trian Partners – one of the more than 400 hedge funds we track here at Insider Monkey. But with so many other “celebrity” managers like David Einhorn, Bill Ackman and Carl Icahn recently in the headlines, why in the world would Cramer talk about like Nelson Peltz? Well, aparently Cramer felt the need to speak out about those who reacted negatively to the recent announcement that Peltz wanamed to the board of directors at snack company Mondelez International Inc (NASDAQ:MDLZ). After the announcement was made of Peltz’s addition to the board, the stock fell, and Cramer spoke up to say he disagreed with the selloff.

Except not so much in  nice way – but in the Jim Cramer way.

“The people who sold? They should have their heads examined,” Cramer said to his “Mad Money” audience. He went on to note that if you follow activist investors like Icahn, Ackman, Einhorn and the like and you bought shares in companies that these activists go involved in (like earning a spot on a board), those shares in aggregate performed below the S&P 500 benchmark.

Except one – Peltz. “If you piggybacked off of Peltz, you consistently beat the S&P,” Cramer said. “Whyis that? I think that if Nelson Petlz takes a substantial position in a company … he treats it like it’s his own business. and that is great new or investors, because he has a 30-year history of making money for people in the markets.”

Cramer went on to relate some of the highlights of Peltz’s career as an activist, where he had served on several key boards and those stocks rallied at faster rates than the S&P benchmark over the same period. Cramer ran down the list of some key stocks like the H.J. Heinz Company (NYSE:HNZ),  The Wendy’s Co (NASDAQ:WEN), Ingersoll-Rand PLC (NYSE:IR), Legg Mason Inc. (NYSE:LM) and E I Du Pont De Nemours and Co (NYSE:DD), which all saw significant rallies during the time that Peltz was involved on their respective boards of directors.

In his current Trian Partners portfolio, his most recent 13F filing showed that Peltz’s largest stake was in Mondelez International Inc (NASDAQ:MDLZ), with more than 23 percent of his portfolio in the stock (a value of $1.29 billion as of the end of September). His No. 2 stake is in PepsiCo, Inc. (NYSE:PEP), valued at about $975 million as of the end of September (nearly 18 percent of his portfolio). No. 3 on his holdings list is the aforementioned Ingersoll-Rand PLC (NYSE:IR), with a stake worth about $838 million (slightly more than 15 percent of his portfolio). Sitting in the No. 4 spot is The Wendy’s Co (NASDAQ:WEN) at about 13 percent of his portfolio, or about $704 million in stock; and the No. 5 position is held by Family Dollar Stores, Inc. (NYSE:FDO), with a position worth about $602 million (about 7 percent of the portfolio) at the end of the 2013 calendar third quarter.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!