Nelson Peltz's Trian Fund Presentation on Their New Stake in General Electric ~ market folly

Monday, October 5, 2015

Nelson Peltz's Trian Fund Presentation on Their New Stake in General Electric

Nelson Peltz's investment firm Trian Partners has disclosed a new stake in General Electric (GE).  Trian now apparently owns 98.5 million shares of GE worth around $2.5 billion.

Trian's amended 13F filed with the SEC for the second quarter now shows that they owned 49.6 million shares of GE at the end of June.   

Of the stake, 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.  Our recent discussions with Jeff and his team have solidified our belief that they are highly motivated to fully deliver on GE's transformation and share much common ground with Trian on ways to improve long-term shareowner value."

Trian's Ed Garden also added, "Trian believes GE has significant long-term potential and that its implied target value per share, including dividends, could be $40 to $45 by the end of 2017 based on our view that GE can deliver EPS of at least $2.20 in 2018. We believe that the strategy of GE management and the board is broadly in line with our recommendations and we look forward to continuing to interact with management as GE works to expand operating margins, drive organic growth, increase capital efficiency and execute a disciplined capital allocation strategy.”

Trian's Presentation on General Electric

Embedded below is their presentation on GE:

You can download a .pdf copy here.

For more on this firm, head to Trian's recent portfolio activity.

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