Nelson Peltz’s hedge fund, Trian Fund Management, adjusted its investment strategy in 2024, concentrating 67% of its $3.9 billion portfolio in three key stocks. The billionaire investor, who sold his stake in Disney (NYSE:DIS) for a substantial profit, also stepped down as chair of Wendy’s board after nearly two decades. His decision allows CEO Kirk Tanner to lead the fast-food chain’s turnaround while Peltz focuses on other ventures. Over the years, Trian has made multiple portfolio adjustments, signaling a shift towards consolidating investments in fewer companies.
In previous years, Trian Fund Management maintained a more diversified portfolio, but its focus shifted toward fewer, high-stakes investments. The hedge fund has consistently held significant shares in companies like Wendy’s, but its recent strategy leans toward asset management and industrial sectors. Notably, Peltz had previously attempted to influence mergers within the asset management industry, including pushing for a combination of Janus Henderson and Invesco.
Which Stocks Dominate Trian’s Portfolio?
At the end of 2024, Trian’s largest position was in Janus Henderson Group, accounting for 34.93% of the hedge fund’s assets. The hedge fund first acquired shares in the company in 2020, and despite fluctuations in the stock’s value, its stake remains significant. Alongside this, investments in GE Aerospace and Solventum form the other two substantial portions of its portfolio, making up nearly 32% of its holdings.
Why Has Wendy’s Position Decreased?
Despite Peltz’s long-standing involvement with Wendy’s, the company now represents a smaller portion of Trian’s portfolio. By the fourth quarter of 2024, Wendy’s shares accounted for 12.82% of the hedge fund’s total holdings, a decrease from previous quarters. However, Trian purchased additional shares, increasing its ownership to 14.97%. Over the years, the hedge fund has adjusted its stake based on market conditions, selling shares when prices were high and reinvesting during downturns.
Peltz’s hedge fund also made significant investments in industrial companies, with GE Aerospace comprising 17.32% of its portfolio. Trian has been involved with GE since 2015, navigating the changes under CEO Larry Culp. Additionally, the hedge fund increased its stake in Solventum, the 3M healthcare spinoff, which now accounts for 14.41% of its assets. The fund’s involvement in these companies aligns with its strategy of concentrating capital in fewer businesses.
Trian has also pushed for changes in its portfolio companies. Following its investment in Solventum, the company announced the sale of its Purification & Filtration business to Thermo Fisher Scientific for $4.1 billion. In response to this development, Trian commented:
“Trian believes that Solventum should be able to deliver faster organic growth and higher margins as a focused, standalone company. Trian looks forward to the Company delivering a Long Range Plan that reflects the business’ potential when it hosts its investor day in March.”
Peltz’s strategy has evolved over the years, favoring long-term investments in fewer companies rather than spreading capital across multiple holdings. While Wendy’s remains a part of Trian’s portfolio, the hedge fund’s focus appears to be shifting towards asset management and industrial firms. Investors following Trian’s moves may note that its approach emphasizes maintaining influence over a select few businesses rather than broad diversification.
