Top 4 Holdings of Nelson Peltz's Trian Fund Management

- By James Li

According to current portfolio statistics, the top four holdings of Nelson Peltz (Trades, Portfolio)'s Trian Fund Management as of the fourth quarter of 2020 are in Sysco Corp. (NYSE:SYY), Proctor & Gamble Co. (NYSE:PG), Comcast Corp. (NASDAQ:CMCSA) and Mondelez International Inc. (NASDAQ:MDLZ).

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Peltz, board chairman of The Wendy's Co. (NASDAQ:WEN), co-founded the New York-based investment management firm in 2005 with his business partners Peter May and Edward Green. The firm seeks long-term capital appreciation by investing in public equity and alternative investment markets through fundamental analysis and identification of undervalued securities.

As of December 2020, the firm's $6.76 billion equity portfolio contains eight holdings with a turnover ratio of 3%. The top three sectors in terms of weight are consumer staples, financial services and communication services, representing 53.46%, 17.35% and 15.40% of the equity portfolio.

Sysco

Trian disclosed that it owned 20,603,608 shares of Sysco (NYSE:SYY), down 15.49% from the third-quarter holding of 24,379,843 shares. Shares averaged $68.86 during the fourth quarter.

GuruFocus ranks the Houston-based food service distributor's financial strength 5 out of 10: Although the company has a strong Altman Z-score of 4.14, interest coverage and debt ratios are underperforming over 93% of global competitors.

Yacktman Asset Management (Trades, Portfolio) also has a holding in Sysco.

Proctor & Gamble

According to GuruFocus Real-Time Picks, a Premium feature, Trian reported a holding of 8,884,877 shares of Proctor & Gamble (NYSE:PG) as of Feb. 17. Shares traded around $128.58.

GuruFocus ranks the Cincinnati-based consumer product manufacturer's profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8 and an operating margin that is near a 10-year high of 23.79% and outperforms over 94.49% of global competitors.

Comcast

Trian disclosed a holding of 19,857,892 shares of Comcast (NASDAQ:CMCSA), up 27.06% from the third-quarter holding of 15,628,146. Shares averaged $47.94 during the fourth quarter; the new shares expanded the equity portfolio 3.28%.

GuruFocus ranks the Philadelphia-based communication service company's profitability 8 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and profit margins that outperform over 81% of global competitors.

Mondelez

Trian disclosed on Feb. 18 a holding of 9,383,698 shares of Mondelez (NASDAQ:MDLZ) according to GuruFocus Real-Time Picks. Shares traded around $55.63.

GuruFocus ranks the Deerfield, Illinois-based snack manufacturer's profitability 7 out of 10 on the back of profit margins outperforming over 80% of global competitors despite three-year revenue and earnings growth rates outperforming just over half of global consumer packaged food companies.

Disclosure: Long Proctor & Gamble.

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This article first appeared on GuruFocus.