Trian Fund, Best Known For Investor Activism In GE, P&G, Takes $900M Stake In Comcast

Asset management firm Trian Fund Management LP has taken up a $900 million position in Comcast Corporation (NASDAQ: CMCSA) stock, it revealed in a filing with the United States Securities and Exchange Commission. 

The hedge fund manages a multi-billion dollar portfolio and is known for strategically maneuvering behemoths like Proctor & Gamble Co (NYSE: PG) and General Electric Company (NYSE: GE) in the past.

What Happened: Trian is of the opinion that Comcast shares are undervalued, according to the Wall Street Journal.

The activist investor's stake amounts to about 0.4% of the $200 billion telecommunications company.

“ We have recently begun what we believe are constructive discussions with Comcast’s management team and look forward to continuing those discussions,” a Trian spokesperson told the Journal.

Why Does It Matter: Trian is known for its purchases in large companies and then pushing for change. 

In the past, Trian has wrestled with Proctor & Gamble in a proxy contest, as reported by Reuters in September last year. The showdown simmered when Nelson Peltz, one of the founding partners Trian, was offered a seat in Proctor & Gamble’s board seat.

It was a similar story with General Electric in 2017. According to CNBC, Ed Garden – one of the founding partners of Trian, found a seat in the automaker's board amidst management shuffles and tried to implement strategic changes.

Pushing for such changes at Comcast would be a lot more difficult for Trian, with the family of Brian Roberts holding a significant voting stake in the telecommunications giant, the Journal noted.

Price Movement: During trading hours, Comcast stock dipped 1.28%, but gained a marginal 0.2%  at $44.77 at the end of the extended trading session.

Photo courtesy: Mike Mozart via Wikimedia