Trian Fund Management LP, a hedge fund known for pushing big companies to make operational and other changes, has launched an activist campaign against Comcast Corp. in a bet that the cable-TV and entertainment giant’s stock is undervalued.
Trian has accumulated about 20 million shares in Philadelphia-based Comcast, for a roughly $900 million stake or about 0.4% of the company, a person familiar with the matter said. Comcast’s market value is about $200 billion.
Executives at Trian, which was founded by Nelson Peltz, Ed Garden and Peter May, recently began conversations with Comcast management, the hedge fund said in a statement Monday, confirming an earlier report by The Wall Street Journal. It isn’t clear what exactly Trian is focused on beyond a belief that Comcast shares are undervalued.
Trian is known for encouraging changes at companies it targets, such as a breakup or sale of underperforming divisions or moves to improve efficiency and better use capital. It often seeks board representation and tries to avoid public spats, unlike some of its more pugnacious rivals.
Trian, which manages roughly $8.8 billion, is accustomed to hunting large prey, having targeted companies including Procter & Gamble Co., DuPont de Nemours Inc. and General Electric Co.