Friday, 25 July 2014
Last updated 17 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…