Nelson Peltz (Trades, Portfolio), a founding partner and CEO of Trian Fund Management, disclosed this week that his firm axed a major chunk of its holding in Mondelez International Inc. (MDLZ, Financial) and added to its stake in Janus Henderson Group PLC (JHG, Financial)(JUHDY, Financial) according to GuruFocus Real-Time Picks, a Premium feature. During the third quarter, the firm also pared its holdings in Sysco Corp. (SYY, Financial) and Proctor & Gamble Co. (PG, Financial).
Trian invests in a concentrated portfolio of undervalued and underperforming companies and seeks operational and strategic initiatives to enhance long-term shareholder value. The firm focuses on companies that offer a favorable risk-reward dynamic and have less competition among peers given barriers to entry.
As of Sept. 30, the firm’s $8.04 billion equity portfolio contains nine stocks with a turnover ratio of 1%. The top three sectors in terms of weight are consumer defensive, industrials and financial services, representing 28%, 27.21% and 24.06% of the equity portfolio.
Shares of Mondelez averaged $62.31 on the Nov. 18 transaction date; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 0.97.
GuruFocus ranks the Chicago-based confectioner company’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and an operating margin that has increased approximately 4.40% per year on average over the past five years and outperforms more than 87% of global competitors.
Janus Henderson Group
Shares of Janus Henderson averaged $41.55 during the third quarter; the stock is significantly overvalued based on Friday’s price-to-GF Value ratio of 1.40.
GuruFocus ranks the U.K.-based asset management company’s financial strength 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, a strong Altman Z-score of 3.68 and debt ratios that are outperforming more than 71% of global competitors.
Shares of Sysco averaged $76.29 during the third quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 1.01.
GuruFocus ranks the Houston-based food service distribution company’s financial strength 5 out of 10 on the back of interest coverage and debt ratios underperforming more than 70% of global competitors despite having a strong Altman Z-score of 4.73.
Proctor & Gamble
Shares of P&G averaged $141.69 during the third quarter; the stock is fairly valued based on Friday’s price-to-GF Value ratio of 1.05.
GuruFocus ranks the Cincinnati-based consumer products company’s profitability 7 out of 10 on several positive investing signs, which include profit margins and returns outperforming more than 90% of global competitors despite three-year revenue growth rates outperforming just over 62% of global consumer products companies.
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