Activist investment firm Trian Fund Management’s $3bn bet on Walt Disney impacted performance in 2023, as the firm, founded by Nelson Peltz, underperformed relative to its activist hedge fund peers, according to a report by Reuters.
The report cites financial details provided to Reuters by a Trian investor as revealing that Trian’s fund returned 10% last year. This is half the 20% return on average that activist hedge funds scored, based on data compiled by Hedge Fund Research.
Trian’s Disney position accounted for roughly 40% of its total portfolio at the end of the third quarter, making it a major contributor to the firm’s underperformance as Disney’s shares ended the year up 4%. The S&P 500 index, meanwhile, put on 24%.
Trian first began agitating for change at Disney at the beginning of last year, but dropped a threatened board challenge in February after Disney announced an extensive restructuring programme that included cost cuts and 7,000 layoffs.
Trian subsequently upped its stake in the entertainment giant to roughly 2% after Disney’s share price failed to recover, accusing CEO Bob Iger and the company’s board of failing to deliver on its promised turnaround plan.
Recently, Trian officially nominated Peltz and former Disney CFO Jay Rasulo for election to Disney’s board, with a shareholder vote expected in the spring.
