Glenview Capital Boosts Newell Brands Exposure

Larry Robbins' hedge fund firm Glenview Capital has ratcheted up its exposure to Newell Brands (NWL).  Per a 13G filed with the SEC, Glenview now shows a 5.56% ownership stake with over 26.96 million shares. 

The filing was made due to portfolio activity on March 16th.  This is up from the 17 million shares they owned at the end of 2017. 

As we've highlighted previously, activist investor Starboard Value is involved in Newell shares and it's recently been revealed that Carl Icahn owns NWL as well. 

Carl Icahn Files 13D on Newell Brands

Carl Icahn has filed an amended 13D with the SEC regarding his stake in Newell Brands (NWL).  Per the filing, Icahn now owns 6.96% of the company with 33.79 million shares (including shares underlying forward contracts).  The filing notes they've now formed a group with Brett Icahn and include his ownership stake.

The forward contracts have a forward price of $23 per share and expiration of January 28th, 2020 and includes exposure to just over 3.01 million shares.  The rest of Carl Icahn's position is common stock.  Brett Icahn owns 500,000 NWL shares.

The filing notes that Icahn started buying on January 25th and was buying as recently as March 16th.

In a previous CNBC interview, Icahn noted that, "I believe Newell itself is undervalued and that's why I bought it."  He said he originally bought NWL around $25

We've highlighted previously that activist firm Starboard Value has also been involved in Newell Brands.

Starboard Value's Letter To Newell Brands Shareholders

Jeff Smith's activist investment firm Starboard Value has taken a stake in Newell Brands (NWL).  They've teamed up with former Jarden management players in order to force change at the company.

We also highlighted last week that Carl Icahn owns Newell shares as well, though it doesn't look like they've teamed up at this point.

Starboard is seeking to replace the board of directors and today released a letter to Newell shareholders.  They write,

"While these have been  extremely challenging times for Newell, we believe that the recent poor financial  and  stock  price  performance  has  created  a unique  opportunity  to  invest  in  an  iconic company and embark on a multi-year operational turnaround that can deliver outstanding returns to  shareholders."

Embedded below is Starboard Value's letter to Newell Brands shareholders:



You can download a .pdf copy here. 

Carl Icahn Reveals Newell Brands Stake

Per an interview with CNBC today, activist investor Carl Icahn reveals he has taken a stake in Newell Brands (NWL).  "I believe Newell itself is undervalued and that's why I bought it" Icahn noted.

He says he bought NWL around $25 and has a less than 5% stake in the company, though Icahn feels he has one of the largest positions in the company.

Another activist investor, Jeff Smith's Starboard Value is also involved in the company and has joined Jarden executive Martin Franklin in trying to replace the entire board.

Newell merged with Jarden and the Starboard contingent feels that the Newell management team has not managed the integration well.  The company features prominent consumer brands such as Rubbermaid, Elmer's glue, and more.

NWL was featured in the investment thesis summary section of  the Q3 2017 issue of our Hedge Fund Wisdom newsletter if you're looking to catch-up on the company's background.