The story of 2024 for billionaire activist investor Nelson Peltz and his Trian Fund Management was the investment firm’s complete exit from its significant stake in Walt Disney (NYSE:DIS) after a 16-month fight with the House That Walt Built. 

What started as an $800 million investment in the entertainment giant in November 2022–he’s thought to have paid $88 a share for that stake–turned into a $3.3 billion investment by the end of March 2024. 

Trian is estimated to have profited $300 million from its investment after selling its remaining stake in the company at $120 a share. Some estimate it was as high as $1 billion. 

“While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders,” Trian Partners, which controls a $3.5 billion stake in the company, said in a statement. “We will be watching the Company’s performance and be focusing on its continued success.”

Although Peltz’s exit from Disney was undoubtedly significant, Trian has been dumping Ferguson Enterprises (NYSE:FERG) stock in recent quarters, moving some of the proceeds into troubled financial services stock Janus Henderson (NYSE:JHG). 

Here’s the method behind the billionaire’s madness.

Key Points About This Article:

• Nelson Peltz’s Disney (NYSE:DIS) move made headlines in 2024, but it isn’t Trian Fund Management’s best bet of recent years.  
• The activist billionaire continues to unload Ferguson Enterprises (NYSE:FERG) stock.
• The investment firm is gaining control of one of America’s oldest asset managers.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks” now.

Peltz Jumped on Ferguson’s Move to NYSE

If you’re unfamiliar with Ferguson Enterprises, it is the largest North American distributor serving the specialized $340B residential and non-residential construction market.

If you see homes being built anywhere in the U.S. and Canada, there’s a good chance Ferguson supplied many of the products in that project, whether it be HVAC equipment, appliances, water and wastewater products, and many other vital products required to make a house a home. 

In fiscal 2024 (July year-end), it had revenue of $30 billion, with the potential for much more. For example, it has an 18% market share in the North American residential trade plumbing market, estimated at $30 billion annually. Approximately one-third of its business is new construction, with RMI (repair, maintenance, and improvement) accounting for two-thirds. 

The company’s history dates back to 1953 in Virginia. The U.S. company was acquired by UK-based Wolseley-Hughes in 1982. 

By 2002, the Ferguson business had become nationally known in the U.S. In 2017, the Wolseley name was replaced by Ferguson Plc. In March 2021, it was secondarily listed on the NYSE, becoming the primary listing in 2022. 

Today, it generates all of its revenue in North America. 

The First Buys Came in Early 2021

Trian first bought shares of the distributor in the first three months of 2021. By March 30, 2021, it owned 13.21 million shares of the company, accounting for 18.7% of its $8.46 billion portfolio. By Q2 2022, it had trimmed its holdings to 12.8 million shares. However, due to a market correction in the first half of 2022, they now accounted for 31.2% of its portfolio.

Ferguson remained Peltz’s largest position until Q4 2022, falling to second-largest through Q3 2023, third place in the fourth quarter, and by Sept. 30, 2024, it was the activist’s sixth-largest position, accounting for just 6.5% of its $3.89 billion portfolio. 

Between Q2 2022 and Q3 2024, it reduced its shares held in Ferguson by 90% to 1.27 million at the end of September. In the third quarter alone, it reduced its Ferguson holdings by 35%. 

Peltz is estimated to have paid an average price of $120.67 for all its shares in the company. Its current price of $175 is about 45% higher than that figure. 

In 2024, it sold 2.9 million shares of Ferguson, with nearly 60% in the first quarter when its shares traded as high as $224.86. Based on the average of its highest share price in the first nine months of 2024 ($224.86) and its lowest ($188.23), Trian likely generated proceeds of at least $600 million from the share sales. 

Here’s Where Some of the Proceeds Went

The billionaire’s largest position is Janus Henderson Group (NYSE:JHG), which accounted for 31.2% of its portfolio at the end of September. It is Trian’s only position over $1 billion. It did not buy any JHG stock in Q3 2024. 

However, in the third quarter, it bought 1.77 million shares of Solventum (NYSE:SOLV), the 3M (NYSE:MMM) spinoff. Trian owns 7.13 million shares of the healthcare company, accounting for 12.8% of the activist’s assets, making it the fourth-largest holding. It first bought SOLV stock in Q2 2024. 

Trian began buying JHG stock in Q2 2020 when it acquired 9.9% of Janus Henderson and 9.9% of Invesco (NYSE:IVZ). Today, the investment firm owns 20% of the asset manager, adding 14.2 million shares in the 17 quarters since. 

The activist is thought to have paid an average of $29.20 a share over the years, a gain of about $450 million. 

Little by little, Peltz moves the profit needle.

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