Historical outperformance doesn’t guarantee good future returns if they are a result of pure luck. We believe Nelson Peltz’s active involvement in the management of the companies he is invested in is the main reason for his superior performance. If this is indeed the case, it is likely that Nelson Peltz’s stock picks will continue to beat the market on average. Pentair (PNR) shares jumped about 6% after the announcement of Peltz’s involvement but the stock gave back all those gains in the last 2 weeks. Pentair shares traded at $64 right before the announcement. They trade at $64 right now. We think it is a good idea to buy Pentair right now.