Benzinga - by Aaron Bry, Benzinga Editor.
No one likes to lose. But if losing means making around $1 billion in the process, I'd take it.
Nelson Peltz, the activist investor behind Trian Fund Management, upped his stake in Walt Disney Co (NYSE:DIS) last October.
By the end of 2023, he owned more than 1% of the company.
Peltz used his sizable position, and influence as an activist investor, to urge shareholders to oust CEO Bob Iger through a proxy battle.
Despite acknowledging his lack of Hollywood expertise, Peltz believed that his outsider's perspective could have helped Disney turn around its performance and shake up the company's board.
At the time, Disney's stock was struggling. Its stock hit a 10-year low, despite a strong gain in the SPDR S&P 500 Trust (NYSE:SPY) and the overall market. Since then, Disney's stock has outperformed the same index so far in 2024.
The Results: In April's shareholder meeting, investors voted against Peltz's nominees and chose to retain Disney's entire board including Iger. Despite failing in his efforts to shake up the C suite, Disney shares have risen significantly since Peltz first invested in the company, although the share price plummeted 10% on Tuesday, May 7. T
Trian and Peltz reportedly sold their entire Disney stake as of Wednesday, May 29. They exited the position at around $120 a share.
Big Gains: This means that even though Peltz lost his battle, he made nearly $1 billion on the investment, according to CNBC. Peltz has previously taken activist positions in companies such as Proctor & Gamble Co (NYSE:PG), PepsiCo (NYSE:PEP) and more.
Now Read: Jim Cramer Doesn’t Care That Nelson Peltz Is Out Of Disney, Says Traders Should Avoid This Real Estate Stock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.