Nelson Peltz’s Boards Outperform S&P 500 Index

0
Nelson Peltz’s Boards Outperform S&P 500 Index

Activist Insight performs independent analysis of stock performance for boards with Nelson Peltz as a director.

Among the many things Procter & Gamble and Trian Partners have failed to agree on, a fundamental question: does Nelson Peltz add value?

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

David Abrams Explains How To Value Stocks

VolatilityContinued from part one... Q1 hedge fund letters, conference, scoops etc Abrams and his team want to understand the fundamental economics of every opportunity because, "It is easy to tell what has been, and it is easy to tell what is today, but the biggest deal for the investor is to . . . SORRY! Read More


With the consumer products company questioning the activist’s experience and results, Activist Insight performed its own analysis for an overview of the campaign published in its flagship publication, Activist Insight Monthly, finding that Trian investments with Peltz as a director outperformed the S&P 500 Index.

According to Trian, its consumer products investments where Peltz had joined the board had outperformed the S&P 500 Index by 880 basis points from the date of initiation to June 20, 2017 or the last day traded. Only Sysco, Heinz, Wendy’s and Mondelez were included. According to Procter & Gamble, companies with Peltz serving on their boards had returned 4% between November 1, 2015, and September 6, 2017. The analysis was based on a weighted average of Madison Square Garden, Mondelez, Sysco and Wendy’s.

Activist Insight sought a simpler model. Taking the six Trian investments on whose boards Peltz sat or sits (Sysco, Mondelez, Wendy’s, Heinz, Ingersoll Rand and Legg Mason), the data provider analyzed total follower returns from the date Peltz was seated to the date he left the board (or September 29 for boards he still sits on). Madison Square Garden was excluded as a non-portfolio company.

The average annualized Total Follower Return* of those investments was 13.5%, compared to 9.7% for the S&P 500 Index over comparable periods. Five of the six companies outperformed the index.

Kind regards,

Josh Black

Editor-in-Chief, Activist Insight

Previous article Low-Risk Investment Returns With 2x Return Of Treasury Bonds? [UPDATED]
Next article Have Hurricanes Changed Our Outlook?
Financial news and data providers Activist Insight and Proxy Insight announced in October 2020 that they had merged to form Insightia, a leader in the field of public company information. Activist Insight was formed in 2012 and offers an extensive range of products including Activist Insight Online, Activist Insight Governance, Activist Insight Vulnerability, Activist Insight Shorts, Activist Insight Monthly magazine, and The Activist Insight Podcast. Proxy Insight has quickly become the world’s leading source of information on global shareholder voting, covering such hot topics as director and auditor elections, “say on pay” resolutions and environmental, social, and governance (ESG) proposals.

No posts to display