Sunday, 21 December 2014
Last updated 4 hours ago
Oct 19 2011 | 10:06am ET
Activist hedge fund manager Nelson Peltz’s Trian Fund Management wants Boston-based financial State Street to increase shareholder value.
In a letter sent to State Street’s board of directors on Sunday, Trian called on the firm to consider returning capital to investors separating its investment units.
“We believe this deterioration in shareholder value stems from a culture that has prioritized growth over profitability and has led to dilutive acquisitions, inadequate cost management and significant non-recurring charges,” said the Trian letter, as reported by HedgeFund.net.
Trian says State Street's share price could be about $99 by 2014, compared to its $33.90 closing price last Friday. The hedge fund also warned that if its suggestions were ignored it could become “significantly more active” as a shareholder.
Peltz’s firm owns 3.3% of outstanding shares in State Street.
On Tuesday, State Street announced Q3 net income of $543 million or $1.10 per share, up from $540 million ($1.08 per share) in the same quarter a year earlier.
State Street has over $2 trillion in assets under management. Trian has $2.8 billion in assets under management.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.