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E I Du Pont De Nemours And Co (DD), PepsiCo, Inc. (PEP), Mondelez International Inc (MDLZ): Trian Partners’ Top Picks for the Fourth Quarter

In its latest 13F filing with the U.S. Securities and Exchange Commission, Nelson Peltz’s Trian Partners disclosed its top 3 picks for the fourth quarter of 2014. According to the information provided by the activist hedge fund, its largest holding during this period was E I Du Pont De Nemours And Co (NYSE:DD). The position represents 19% of the firm’s equity portfolio and amounts to 24.3 million shares of the company’s stock. The other two equities Trian Partners is betting on are PepsiCo, Inc. (NYSE:PEP) and Mondelez International Inc (NASDAQ:MDLZ).

TRIAN PARTNERS

Trian Partners is an alternative investment management firm, which was founded by Nelson Peltz, Peter May, and Ed Garden in 2005. The hedge fund tends to invest in undervalued and underperforming companies, engaging with management and making proposals, in order to unlock additional shareholder value. According to investment firm, this can be achieved through a combination of improved operational execution, strategic re-direction, and a more efficient allocation of capital. This activist investment approach has allowed Trian Partners to build an equity portfolio valued at around $9.4 billion. Furthermore, the fund tends to invest in companies operating in the financial, consumer goods, and service industry.

Trian Partners was particularly bullish regarding E I Du Pont De Nemours And Co (NYSE:DD) last quarter. In addition to raising its stake in the company by more than 17.3 million shares, the activist hedge fund nominated four candidates to the Board of Directors. Mr. Peltz’s firm initiated a position in the equity in the second quarter of 2013 and has been increasing its exposure ever since. Its investment seems to have paid off, as the stock gained around 30% during this period. E I Du Pont De Nemours And Co (NYSE:DD) is a provider of numerous agricultural products, including soybean, canola, and corn hybrid, as well as herbicides, fungicides, and insecticides. Furthermore, the science and technology company manufactures various electronic materials and performance chemicals. Apart from Trian Partners, this stock is held by numerous institutional investors, including John A. Levin’s Levin Capital Strategies, which disclosed a position of 1 million shares during the third quarter.

PepsiCo, Inc. (NYSE:PEP) is the second-largest position in Trian Partners’ equity portfolio with 17.8 million shares. The hedge fund did not alter its stake in the company last quarter, yet displayed optimism regarding the stock by maintaining its significant exposure. Much to the delight of Mr. Peltz’s firm, the beverage behemoth’s shares gained around 18% in 2014.

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