In this article, we discuss the top 9 stock picks of Nelson Peltz’s Trian Partners.
American billionaire investor, Nelson Peltz, has been the founding member and chief executive officer of Trian Partners since 2005. Trian Partners is a multi-billion dollar investment manager that seeks to invest in top grade yet undervalued and underperforming public companies, and helps the management of these businesses in securing long-term sustainable earnings for stakeholders.
After graduating from the Wharton School at the University of Pennsylvania, Peltz began his impressive investment career. He is very well known for the significant role he has played in the field of corporate governance, with Peltz serving as a board director at multiple companies throughout his career, including H. J. Heinz Company, Legg Mason Inc., Ingersoll Rand Inc. (NYSE:IR), MSG Networks Inc, Mondelez International, Inc. (NASDAQ:MDLZ), Sysco Corporation (NYSE:SYY), and The Procter & Gamble Company (NYSE:PG).
Nelson Peltz of Trian Partners
Currently, Nelson Peltz is the non-executive chairman of The Wendy’s Company (NASDAQ:WEN), and a director at Invesco Ltd. (NYSE:IVZ) and Madison Square Garden Sports Corp. (NYSE:MSGS). The most notable stocks in Peltz’s Q3 portfolio include Mondelez International, Inc. (NASDAQ:MDLZ), The Wendy’s Company (NASDAQ:WEN), The Procter & Gamble Company (NYSE:PG), and Comcast Corporation (NASDAQ:CMCSA), among others discussed in detail below.
Our Methodology
With this context in mind, let’s discuss the top 9 stock picks of Nelson Peltz’s Trian Partners. We used the Q3 portfolio of Trian Partners to select these stocks.
Top Stock Picks of Nelson Peltz’s Trian Partners
9. General Electric Company (NYSE:GE)
Trian Partners’ Stake Value: $414,760,000
Percentage of Trian Partners’ 13F Portfolio: 5.15%
Number of Hedge Fund Holders: 53
General Electric Company (NYSE:GE) is a New York-based multinational conglomerate that primarily specializes in aviation, power, renewable energy, and the digital industry. Nelson Peltz, via Trian Partners, holds a $414.76 million stake in General Electric Company (NYSE:GE), which accounts for 5.15% of the firm’s Q3 portfolio.
Morgan Stanley analyst Joshua Pokrzywinski on November 23 resumed coverage of General Electric Company (NYSE:GE) with an Overweight rating and a $125 price target. The analyst stated that the company has a good risk/reward combination, shows promise on all fronts, and improving catalysts in 2022.
General Electric Company (NYSE:GE) posted its Q3 results on October 26. EPS in the period totaled $0.57, beating estimates by $0.13. The $18.43 billion revenue was down 5.09% from the prior-year quarter, missing analysts’ consensus estimates by -$745.06 million.
Andreas Halvorsen’s Viking Global is the leading General Electric Company (NYSE:GE) stakeholder, with a $1.74 billion position in the company. Overall, Insider Monkey’s database suggests that 53 hedge funds held stakes in General Electric Company (NYSE:GE) as of the third quarter, down from 67 funds in the preceding quarter. The total value of these stakes is approximately $6.24 billion.
In addition to Mondelez International, Inc. (NASDAQ:MDLZ), The Wendy’s Company (NASDAQ:WEN), The Procter & Gamble Company (NYSE:PG), and Comcast Corporation (NASDAQ:CMCSA), General Electric Company (NYSE:GE) is a notable stock in Nelson Peltz’s Q3 portfolio.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q1 2021 investor letter:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
8. Mondelez International, Inc. (NASDAQ:MDLZ)
Trian Partners’ Stake Value: $465,315,000
Percentage of Trian Partners’ 13F Portfolio: 5.78%
Number of Hedge Fund Holders: 46
Mondelez International, Inc. (NASDAQ:MDLZ), an American multinational confectionery, beverage, and food company, is one of Nelson Peltz’s top stock picks for the third quarter, with his investment firm owning almost 8 million Mondelez International, Inc. (NASDAQ:MDLZ) shares, valued at $465.3 million. The stock represents 5.78% of Peltz’s Q3 portfolio of investments. Mondelez International, Inc. (NASDAQ:MDLZ) recently announced that it is committing to a 2050 target of net zero greenhouse gas emissions across its entire value chain.
As of September this year, 46 hedge funds in the database of Insider Monkey were bullish on Mondelez International, Inc. (NASDAQ:MDLZ), with stakes worth $1.92 billion. The leading stakeholder in the company is Ric Dillon’s Diamond Hill Capital, holding 9.5 million shares, with a total stake value of $554.4 million.
Mondelez International, Inc. (NASDAQ:MDLZ), on November 2, disclosed its Q3 earnings. EPS for the quarter equaled $0.71, beating estimates by $0.01. The revenue came in at $7.18 billion, up 7.76% year-over-year, outperforming estimates by $126.07 million.
7. The Wendy’s Company (NASDAQ:WEN)
Trian Partners’ Stake Value: $549,227,000
Percentage of Trian Partners’ 13F Portfolio: 6.82%
Number of Hedge Fund Holders: 33
The Wendy’s Company (NASDAQ:WEN) is an American holding company that is the official franchisor of the fast food restaurant, Wendy’s. Trian Partners holds roughly 25.33 million shares in The Wendy’s Company (NASDAQ:WEN) as of Q3 2021, worth $549.2 million, representing 6.82% of the firm’s stock portfolio.
The Wendy’s Company (NASDAQ:WEN) posted its Q3 results on November 10, with EPS for the quarter being $0.19, beating estimates by $0.01. Revenue for the period totaled $470.25 million, missing estimated revenue by -$1.24 million.
On November 16, Argus analyst John Staszak downgraded The Wendy’s Company (NASDAQ:WEN) to Hold from Buy, citing the Q3 miss on comps and margins.
One of the leading stakeholders in The Wendy’s Company (NASDAQ:WEN) is Arrowstreet Capital, holding a $79.6 million position in the company. Overall, 33 hedge funds out of the 867 funds tracked by Insider Monkey as of September this year were long The Wendy’s Company (NASDAQ:WEN), with a total stake value of $949.8 million.
6. The Procter & Gamble Company (NYSE:PG)
Trian Partners’ Stake Value: $736,679,000
Percentage of Trian Partners’ 13F Portfolio: 9.15%
Number of Hedge Fund Holders: 69
An American consumer staples corporation, The Procter & Gamble Company (NYSE:PG) represents 9.15% of Trian Partners’ Q3 portfolio, with the firm owning 5.26 million shares of The Procter & Gamble Company (NYSE:PG), worth $736.67 million.
The Q3 EPS for The Procter & Gamble Company (NYSE:PG) came in at $1.61 on October 19, beating estimates by $0.02. The $20.24 billion revenue for the third quarter was up 5.28% year-over-year, outperforming estimates by $445.19 million.
Deutsche Bank analyst Steve Powers on October 20 lowered the price target on The Procter & Gamble Company (NYSE:PG) to $160 from $163 and kept a Buy rating on the shares after the Q3 results, stating that the earnings fell a little short.
At the end of the third quarter, 69 hedge funds were long The Procter & Gamble Company (NYSE:PG), up from 68 funds in the preceding quarter. Andy Brown’s Cedar Rock Capital is the largest stakeholder in The Procter & Gamble Company (NYSE:PG), with 7.41 million shares valued at over $1 billion.
5. Invesco Ltd. (NYSE:IVZ)
Trian Partners’ Stake Value: $955,650,000
Percentage of Trian Partners’ 13F Portfolio: 11.88%
Number of Hedge Fund Holders: 38
Invesco Ltd. (NYSE:IVZ), a Georgia-based publicly listed investment management company, is one of the top stock picks from Nelson Peltz’s Q3 portfolio, with his firm owning a $955.65 million position in the company. Invesco Ltd. (NYSE:IVZ) stock accounts for 11.88% of Trian Partners’ portfolio as of September 2021.
Invesco Ltd. (NYSE:IVZ) posted on October 26 its Q3 earnings. EPS in the quarter equaled $0.77, topping estimates by $0.04. The revenue reflected a 22.06% increase from the prior-year quarter at $1.33 billion, outperforming estimated revenue by $2.12 million.
Evercore ISI analyst Glenn Schorr upgraded Invesco Ltd. (NYSE:IVZ) on October 22 to In Line from Underperform, keeping an unchanged price target of $28 on the shares. He stated that the stock represents reliable organic growth and improving profitability.
Of the 867 hedge funds tracked by Insider Monkey as of Q3 2021, Pzena Investment Management is one of the leading Invesco Ltd. (NYSE:IVZ) stakeholders after Trian Partners, with a $64.8 million position in the company. Overall, 38 hedge funds reported owning stakes valued at $1.35 billion in Invesco Ltd. (NYSE:IVZ).
In addition to Mondelez International, Inc. (NASDAQ:MDLZ), The Wendy’s Company (NASDAQ:WEN), The Procter & Gamble Company (NYSE:PG), and Comcast Corporation (NASDAQ:CMCSA), Invesco Ltd. (NYSE:IVZ) is a notable stock in Nelson Peltz’s Q3 portfolio.
4. Janus Henderson Group plc (NYSE:JHG)
Trian Partners’ Stake Value: $979,617,000
Percentage of Trian Partners’ 13F Portfolio: 12.17%
Number of Hedge Fund Holders: 24
Janus Henderson Group plc (NYSE:JHG), a publicly listed global asset management firm, is a top stock pick of Nelson Peltz as of September this year. Peltz’s Trian Partners holds 23.7 million shares in Janus Henderson Group plc (NYSE:JHG), worth $979.6 million, which represents 12.17% of the firm’s Q3 portfolio.
Janus Henderson Group plc (NYSE:JHG) on October 28 posted its Q3 results. EPS in the period came in at $1.16, beating estimates by $0.17. The $687.40 million revenue failed to meet analysts’ expected revenue by -$2.5 million.
At the end of the third quarter, 24 hedge funds in Insider Monkey’s database of elite funds were bullish on Janus Henderson Group plc (NYSE:JHG), up from 22 funds in the preceding quarter. The total stakes held by these hedge funds amounted to $1.37 billion. One of the prominent Janus Henderson Group plc (NYSE:JHG) stakeholders is Ariel Investments, holding a $132.9 million position in the company.
3. Sysco Corporation (NYSE:SYY)
Trian Partners’ Stake Value: $1,050,536,000
Percentage of Trian Partners’ 13F Portfolio: 13.06%
Number of Hedge Fund Holders: 29
Sysco Corporation (NYSE:SYY) is a Houston-based multinational corporation that provides food products, kitchen equipment, and tabletop items to restaurants and hospitality businesses around the US. Sysco Corporation (NYSE:SYY) posted its Q3 earnings on November 9. EPS in the period equaled $0.83, missing estimates by -$0.04. The Q3 revenue totaled $16.46 billion, outperforming estimates by $608.33 million, up 39.73% year-over-year.
Trian Partners holds a $1.05 billion position in Sysco Corporation (NYSE:SYY), which accounts for 13.06% of the firm’s Q3 portfolio. One of the leading stakeholders in Sysco Corporation (NYSE:SYY) as of Q3 2021 is Yacktman Asset Management, with a $424.2 million stake in the company.
At the end of September this year, 29 hedge funds in Insider Monkey’s database of 867 elite funds were long Sysco Corporation (NYSE:SYY), with total stakes amounting to $2.24 billion. This is a decrease from 40 funds holding a position in Sysco Corporation (NYSE:SYY) in the prior quarter, with a total stake value of $2.6 billion.
2. Comcast Corporation (NASDAQ:CMCSA)
Trian Partners’ Stake Value: $1,118,120,000
Percentage of Trian Partners’ 13F Portfolio: 13.90%
Number of Hedge Fund Holders: 75
Comcast Corporation (NASDAQ:CMCSA), a multinational telecommunications company, represents 13.9% of Trian Partners’ Q3 portfolio, with the firm owning 13.38 million shares in Comcast Corporation (NASDAQ:CMCSA), worth $1.11 billion. Loop Capital analyst Alan Gould assumed coverage of Comcast Corporation (NASDAQ:CMCSA) on November 22, and lowered the price target to $67 from $71, keeping a Buy rating on the shares.
Comcast Corporation (NASDAQ:CMCSA), on October 28, reported its Q3 results. EPS in the period came in at $0.87, beating estimates by $0.12. Revenue for the third quarter totaled $30.3 billion, outperforming estimates by almost $425 million.
As of September this year, 75 hedge funds tracked by Insider Monkey were bullish on Comcast Corporation (NASDAQ:CMCSA), with a total stake value of $8.54 billion, down from 84 funds in the preceding quarter with stakes worth $9.3 billion.
Jean-Marie Eveillard’s First Eagle Capital Management is the leading Comcast Corporation (NASDAQ:CMCSA) Q3 stakeholder, holding a $1.64 billion position in the company.
Here is what ClearBridge Investments has to say about Comcast Corporation (NASDAQ:CMCSA) in its Q2 2021 investor letter:
“We funded the shift primarily with trims in Comcast following big gains in this name. Comcast is a long-term holding that has been and remains a core holding. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.
Comcast, like Blackstone, has been a meaningful long-term holding whose stock performance has at times lagged its robust fundamental performance. Over the last nine months the stock price caught up some with the fundamentals and looked like it had more room to run. Our thesis on the name evolved, however, following the May 17 announcement that competitor Discovery was merging its operations with Time Warner. This deal positions the new company as a credible competitor to Netflix, Amazon Prime, Hulu and Disney, and results in Comcast being left without the proverbial dance partner in the evolving pay TV/DTC landscape. While we continue to believe Comcast’s cable systems business is well-positioned and that NBCUniversal remains valuable, the competitive dynamic for NBCUniversal has stiffened. Our reduced position size reflects both our continued enthusiasm for many parts of the franchise and emerging concerns given the evolving pay TV/DTC landscape.”
1. Ferguson plc (NYSE:FERG)
Trian Partners’ Stake Value: $1,773,802,000
Percentage of Trian Partners’ 13F Portfolio: 22.05%
Number of Hedge Fund Holders: 10
Ferguson plc (NYSE:FERG) is a leading British distributor of plumbing and heating products. Being the largest holding in Nelson Peltz’s Q3 portfolio, Ferguson plc (NYSE:FERG) represents 22.05% of his total investments, with Peltz owning a $1.77 billion position in the company.
On October 27, Ferguson plc (NYSE:FERG) announced a cash dividend of $1.665 per share, which would be payable on December 10 to stakeholders of record on October 29.
Morgan Stanley analyst Annelies Vermeulen on October 21 raised the price target on Ferguson plc (NYSE:FERG) to £11,070 from £9,970 and kept an Equal Weight rating on the shares.
Polar Capital is the leading Ferguson plc (NYSE:FERG) stakeholder, with a position worth $4.55 billion in the company. Overall, 10 hedge funds held stakes in Ferguson plc (NYSE:FERG), valued at over $6.5 billion as of September 2021.
You can also take a look at Top 10 Stock Picks of Leon Lowenstein’s Lionstone Capital Management and Top 10 Stock Picks of Lawrence Kam’s Sonic Capital.
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Disclosure: None. Top 9 Stock Picks of Nelson Peltz’s Trian Partners is originally published on Insider Monkey.
