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Activist Investor Nelson Peltz Says He Is Putting New Capital To Work

Activist investor and Trian Partners CEO Nelson Peltz told CNBC on Thursday's "Halftime Report" he bought shares of unnamed companies that were "beaten down too much."

Benzinga · 05/15/2020 14:32

Activist investor and Trian Partners CEO Nelson Peltz told CNBC on Thursday's "Halftime Report" he bought shares of unnamed companies that were "beaten down too much."

Peltz's Buying Strategy

The activist investor isn't disclosing what specific stocks he has been buying, but did confirm they are "new positions."

This shouldn't be confused with a bullish stance on the market as a whole, Peltz said, adding that he is "buying specific companies."

Regarding existing positions that have been confirmed, most notably General Electric Company (NYSE: GE), Peltz said the company's CEO Larry Culp is ranked among the "best industrial managers" who have been dealt an "awful hand."

Despite nearly everything working against Culp's favor, the company is positioned to navigate the storm given a strong balance sheet, Peltz said.

Peltz On GE 

General Electric is in the fortunate position of overseeing a "great business" in GE Aviation, although no one is flying, Pelz said.

If no one ever flies again, then Culp is sitting on a "terrible business," the activist investor said. 

The CEO is showing an ability to maintain his composure and initiate managerial decisions that should have been done "decades ago," said. 

What's Next For GE 

If consumers don't embrace air travel in the future, GE's stock is "overpriced," but if travel resumes, then GE's stock will offer investors a "great bargain," Peltz said.

Peltz said he believes travel will be supported by the release of a COVID-19 vaccine "sooner rather than later."

Tens of millions of doses could be made as early as the end of 2020, he said, adding that he has confidence in the handful of companies working tirelessly on a treatment.

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