Trian Fund, Best Known For Investor Activism In GE, P&G, Takes $900M Stake In Comcast

Asset management firm Trian Fund Management LP has taken up a $900 million position in Comcast Corporation CMCSA stock, it revealed in a filing with the United States Securities and Exchange Commission. 

The hedge fund manages a multi-billion dollar portfolio and is known for strategically maneuvering behemoths like Proctor & Gamble Co PG and General Electric Company GE in the past.

What Happened: Trian is of the opinion that Comcast shares are undervalued, according to the Wall Street Journal.

The activist investor's stake amounts to about 0.4% of the $200 billion telecommunications company.

“ We have recently begun what we believe are constructive discussions with Comcast’s management team and look forward to continuing those discussions,” a Trian spokesperson told the Journal.

Why Does It Matter: Trian is known for its purchases in large companies and then pushing for change. 

In the past, Trian has wrestled with Proctor & Gamble in a proxy contest, as reported by Reuters in September last year. The showdown simmered when Nelson Peltz, one of the founding partners Trian, was offered a seat in Proctor & Gamble’s board seat.

It was a similar story with General Electric in 2017. According to CNBC, Ed Garden – one of the founding partners of Trian, found a seat in the automaker's board amidst management shuffles and tried to implement strategic changes.

Pushing for such changes at Comcast would be a lot more difficult for Trian, with the family of Brian Roberts holding a significant voting stake in the telecommunications giant, the Journal noted.

Price Movement: During trading hours, Comcast stock dipped 1.28%, but gained a marginal 0.2%  at $44.77 at the end of the extended trading session.

Photo courtesy: Mike Mozart via Wikimedia

Posted In: NewsFinancingHedge FundsManagementGeneralActivist investorsTrian Fund Management LPTrian PartnersU.S. Securities and Exchange Commission
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...