Activist Stocks: PDI Inc; Quantum; The Peltz-Heinz Show

Activist kool-aiders, light/long/behind day. Stories/news for May 7 below. Hit us with leads at @activiststocks, daily newsletter signup, ICYMI the latest newsletter is here.

News –

  • Heartland Advisors changed its stake from passive to active on PDI Inc. This is a sub $20M market cap outsourced sales company in the healthcare industry. They’ve owned shares since 2005 and now 18.8%. Corporate governance and maximizing shareholder value is its focus.
  • Starboard Value upped its Quantum stake from 25.7M (end of ‘14) to 44.4M. The fund is up nearly 70% since going active in October 2012.

Stories –

Warren Buffett: If You Own A Good Business, Keep It

Berkshire Hathaway Warren BuffettBuying private businesses is easier than acquiring public firms, and investors should avoid selling good investments at all costs, according to the Oracle of Omaha, Warren Buffett. Q2 2020 hedge fund letters, conferences and more In an interview with CNBC in March 2013, Buffett was asked if he was looking at any businesses, in particular, Read More

  • @DaveCBenoit at WSJ has a piece on Nelson Peltz and his marketing prowess (rather his attention to detail) – pointing out how Peltz single handedly got Heinz to sponsor the Nathan’s Hot Dog eating contest. Things go downhill a bit after that, with it becoming the Peltz-Heinz show. The key takeaway, “Trian waged a proxy fight and got two board seats in 2006, including one for Nelson Peltz. Seven years later, Heinz was sold to 3G Capital and Berkshire Hathaway for $23 billion. Today, Heinz’s former CEO and CFO are both close with Trian.” …Now, I will point out that from the time that Peltz went active on Heinz to the time it was sold to 3G its stock returned 7% annualized. Not great, but the market mustered a 2.6% CAGR over the same period [link]