Nelson Peltz Remains Supremely Confident in Top Stock Picks Du Pont (DD), SYSCO (SYY), More

Nelson Peltz’s Trian Fund Management is one of the best-known activist hedge funds in the world, managing about $13.8 billion in assets. In its latest 13F filing, the firm disclosed a public equity portfolio valued at $10.23 billion as of September 30. This highly concentrated portfolio, which included only seven stocks, was focused on consumer discretionary companies (which accounted for 42% of the portfolio’s total value) and industrials (30%). The positions were little changed over the third quarter, so in this article we’ll take a look at the fund’s top stakes and at their performance over the second-half of the year.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

E I Du Pont De Nemours And Co (NYSE:DD)

– Shares Owned by Trian Fund Management (as of September 30): 17.45 Million

– Value of Holding (as of September 30): $1.16 Billion

Let’s start with E I Du Pont De Nemours And Co (NYSE:DD), in which Trian trimmed its position by 9% over the third quarter. Nonetheless, the firm remained the largest hedge fund shareholder of the stock in our database as of September 30, trailed by Jonathon Jacobson’s Highfields Capital Management, which held 7.8 million shares at the end of the third quarter. Since the third quarter ended, shares of E I Du Pont De Nemours And Co (NYSE:DD) have gained 5.75%, helped by speculation surrounding its merger with Dow Chemical Co (NYSE:DOW) and by its third-quarter results. In late-October, the company posted EPS of $0.34 on revenue of $4.92 billion, beating the Street’s consensus estimates by $0.14 and $60 million, respectively.

Bank of New York Mellon Corp (NYSE:BK)

– Shares Owned by Trian Fund Management (as of September 30): 32.37 Million

– Value of Holding (as of September 30): $1.29 Billion

Next up is Bank of New York Mellon Corp (NYSE:BK). After acquiring 152,027 shares during the third quarter, Trian also remained the largest shareholder of this stock on September 30 among the investors that we track. Also long the stock was Warren Buffett’s Berkshire Hathaway, with 21.13 million shares, or about $842.9 million in stock.

Bank of New York Mellon Corp (NYSE:BK) gained almost 5% over the July-to-September period, and has managed far greater returns in the current quarter, spiking by more than 20%, helped by strong results and speculation about the timing of an interest rate hike. A few weeks ago, the bank reported third-quarter EPS of $0.90 on revenue of $3.94 billion, besting analysts’ expectations by $0.09 and $80 million, correspondingly.

We’ll check out three more of the fund’s conviction stock picks on the next page.