Trian Fund Management LP, the hedge fund run by billionaire Nelson Peltz, raised its stake in State Street Corp. (STT) to 1.2 percent last quarter from 0.5 percent of common shares outstanding three months earlier.
Trian and its affiliates held 6.1 million State Street shares as of June 30, up from 2.3 million on March 31, according to a Form 13F filed today with the U.S. Securities and Exchange Commission. The June 30 holdings have a market value of about $214 million.
State Street, the Boston-based company that ranks as the third-largest custody bank, has been cutting spending in an attempt to minimize the impact of record low interest rates, which reduce the return it earns on investments and lending to institutional clients. The shares have fallen 25 percent this year.
Trian, based in New York, also holds about 14.7 million shares of Legg Mason Inc., a stake of almost 10 percent in the Baltimore-based asset-management company. Trian, whose principals also include President Peter May and Vice Chairman Edward Garden, sometimes takes activist stakes in which it seeks to work with management to turn companies around.
In addition to its increased State Street holdings, Trian also reported owning 1.35 million CoreLogic Inc. (CLGX) shares and 699,700 Consol Energy Inc. (CNX) shares at June 30. Neither company was listed in Trian’s Form 13F for the first quarter. CoreLogic is a Santa Ana, California, real estate information company and Consol is a Canonsburg, Pennsylvania, coal producer.
To contact the reporter on this story: Miles Weiss in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Christian Baumgaertel at email@example.com