Trian Fund Management, the activist investor hedge fund co-founded by billionaire Nelson Peltz, still possesses a stake in the mighty Walt Disney Company despite making headlines for reportedly divesting a significant portion of its shares earlier this year. According to SEC filings, Trian sold 29.7 million shares valued at $3.69 billion during Q2, leaving it with nearly 2.65 million shares worth about $263 million.
This maneuver followed Peltz’s intense but unsuccessful proxy battle against Disney’s leadership. The sale of shares, amounting to $120 per share, came right after Peltz’s attempt to displace Disney CEO Bob Iger failed during an April shareholder meeting. Despite losing the fight to place his nominees on Disney’s board, Peltz managed to secure a $1 billion gain from this investment.
The quarterly 13-F report filed on May 15 initially showed Trian holding 32.4 million Disney shares worth a whopping $3.96 billion, underscoring the fund’s massive earlier commitment to the media giant. These filings not only revealed the sale of Disney stock but also showcased Trian’s strategic movements involving other notable companies. For instance, the hedge fund sold 539,884 shares of Ferguson Plc and purchased shares in UHaul, Solventum Corporation, and Rentokil Initial plc.
Interestingly, Disney’s stock has shown resilience amid these activities. By Thursday’s late-afternoon trading, Disney’s stock surged by 2.66% to $88.60, reflecting investor confidence. Several exchange-traded funds (ETFs) tracking Disney followed suit, posting gains in response to the latest developments.
It’s a fascinating saga of high-stakes investment and strategic decisions. What are your thoughts on Peltz’s moves and the current state of Disney? Share your insights in the comments below, and don’t forget to share this story with your friends!
Source: Michael Juliano
