MutualFundWire.com: Did Peltz Mistime His Legg Mason Exit?

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Monday, April 18, 2016

Did Peltz Mistime His Legg Mason Exit?

Nelson Peltz is about to mostly exit his position in Legg Mason [profile], but why didn't he get a better deal?

Nelson Peltz
Trian Fund Management
Founder

Chris Dieterich of Barron's highlights thoughts from Wells Fargo Securities' Christopher Harris, who "wonders why Trian would want to exit its position in LM at such a low price."

Per Barron's, when Peltz's Trian built its Legg stake in 2009 and 2010, prices ranged from $16 to $28 per share. In February 2015, Legg's stock price approached $60. Yet the deal Trian is now doing with Singapore-based Shanda Group will only be for $32 per share.

So, for all the talk about unsophisticated mutual fund investors being unable to time their investments right when buying shares, it looks like timing is difficult for activist investors, too, at least when they're investing in those mutual fund shops.

Printed from: MFWire.com/story.asp?s=53848

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