Top Stock Picks of Billionaire Nelson Peltz

#3 PepsiCo Inc. (NYSE:PEP)

Shares Owned by Trian Fund Management (as of September 30): 18.32 Million Shares

Value of Holding (as of September 30): $1.73 Billion

Nelson Peltz’s fund held its position in PepsiCo Inc. (NYSE:PEP) unchanged during the third quarter at nearly 18.32 million shares. Let us remind you that the food and beverage giant added Peltz’s adviser William R. Johnson to its Board of Directors in mid-January, ending a long-running proxy war between the two camps. The activist investor has previously claimed that PepsiCo and its shareholders would greatly benefit from a potential spin-off of its beverages business from its Frito-Lay snacks division. In the meantime, the stock has gained more than 3% since the beginning of the year, but it is currently trading at a relatively rich P/E ratio of 29.09. Ken Fisher’s Fisher Asset Management reported owning 5.27 million shares in PepsiCo Inc. (NYSE:PEP) through the latest round of 13F filings.

#2 Mondelez International Inc. (NASDAQ:MDLZ)

Shares Owned by Trian Fund Management (as of September 30): 48.03 Million Shares

Value of Holding (as of September 30): $2.01 Billion

Trian Fund Management’s stake in Mondelez International Inc. (NASDAQ:MDLZ) remained relatively unchanged during the September quarter at approximately 48.03 million shares. Nelson Peltz acquired a position in Mondelez after Kraft Foods spun-off the snack company back in 2012. At the beginning of 2014, the company added the activist investor to its Board of Directors and has greatly benefited as a result. The company’s management welcomed Trian’s plans of investing in high-tech plants that would eventually reduce production costs and increase margins. As a result, the company has seen its operating margins strengthen over the latest quarters even though they still remain below the industry average. In the meantime, the stock is 19% in the green year-to-date. First Eagle Investment Management, founded by Jean-Marie Eveillard, owns a 3.50 million shares in Mondelez International Inc. (NASDAQ:MDLZ) as of September 30.

#1 General Electric Company (NYSE:GE)

Shares Owned by Trian Fund Management (as of September 30): 90.57 Million Shares

Value of Holding (as of September 30): $2.28 Billion

Nelson Peltz’s activist hedge fund firm boosted its position in General Electric Company (NYSE:GE) by 40.94 million shares during the September quarter, which accounts for 19.50% of its entire portfolio as of September 30. Trian Fund Management has publicly disclosed its views on the company and its support for the current strategy pursued by GE’s management. GE has been working on restructuring its “portfolio from a broad conglomerate, including a large regulated financial services business, to a leading industrial company focused on attractive infrastructure end markets”, as outlined by Trian in a public statement published this October. At the same time, Nelson Peltz said that “we invested in GE because it is undervalued and underappreciated by the market despite what we believe is a transformation that will allow its world-class industrial businesses to drive attractive shareowner returns”. The shares of GE are up 29% for the year, thanks to the 20% gain generated since the beginning of the fourth quarter. Fisher Asset Management held a 30.85 million-share stake in General Electric Company (NYSE:GE) at the end of the third quarter.

Disclosure: none