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Top 9 Stock Picks of Nelson Peltz’s Trian Partners

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·8 min read
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  • MDLZ
  • GE
  • PG
  • IVZ
  • WEN

In this article, we discuss the top 9 stock picks of Nelson Peltz's Trian Partners. If you want to skip our detailed analysis of these stocks, go directly to the Top 4 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).

Top 9 Stock Picks of Nelson Peltz's Trian Partners
Top 9 Stock Picks of Nelson Peltz's Trian Partners

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.

Click to continue reading and see Top 4 Stock Picks of Nelson Peltz's Trian Partners. Suggested articles:

Disclosure: None. Top 9 Stock Picks of Nelson Peltz's Trian Partners is originally published on Insider Monkey.