Nelson Peltz’s Trian Fund Management Portfolio – Q3 2016 Update

His 13F portfolio decreased from $10.50B to $10.24B this quarter.

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Summary

– Nelson Peltz’s 13F portfolio decreased from $10.50B to $10.24B this quarter. The number of positions remained steady at 7.
– Trian Fund Management decreased DuPont during the quarter.
– The top three positions are Sysco Corporation, General Electric, and Mondelez International, and they add up to ~63% of the portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Nelson Peltz’s US stock portfolio on a quarterly basis. It is based on Peltz’s regulatory 13F Form filed on 11/14/2016. Please visit our Tracking Nelson Peltz’s Trian Fund Management Portfolio article for an idea on his investment philosophy and our last update for the fund’s moves during Q2 2016.

This quarter, Peltz’s US long portfolio decreased ~3% from $10.50B to $10.24B. The number of holdings remained steady at 7. The top three holdings are at 62.67% of the US long portfolio: Sysco Corporation (NYSE:SYY), General Electric (NYSE:GE), and Mondelez International (NASDAQ:MDLZ)

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Stake Decreases:

DuPont E l De Nemours: DD is a large 11.42% of the US long portfolio position. It was first purchased in Q4 2013. The bulk of the current stake was acquired in Q4 2014 at prices between $67 and $76. Q4 2015 saw a ~22% reduction at prices between $44 and $70. There was another ~15% selling over the last two-quarters at prices between $62 and $71. The stock currently trades at $70.32.

  • Note 1: In May 2015, Trian lost a proxy battle: they nominated 4 members to the 12-member board, but lost the shareholders vote. In December 2015, Dow Chemical (NYSE:DOW) and DuPont announced a merger of equals, with plans to separate into three businesses after the merger.
  • Note 2: The prices quoted above are adjusted to account for the spin-off of Chemours CC) that closed in July 2015.

General Electric: GE is currently Trian’s second-largest position at 21.02% of the 13F portfolio. The position was established in Q2 2015 at prices between $24.50 and $28.50 and increased by ~83% the following quarter at prices between $23 and $27.50. Q4 2015 saw a ~14% trimming at prices between $25 and $31.50. The stock currently trades at $31.34. There was a marginal reduction this quarter.

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.This news was published by www.seekingalpha.com

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