GE’s Crash Cost a Wall Street Titan $700 Million
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Three years ago, Nelson Peltz’s Trian Fund Management took a $2.5 billion position in General Electric Co., insisting it was undervalued and “under-appreciated.” Today, the activist firm’s loss on that investment could be approaching $700 million.
Trian bought most of the stake -- its biggest at the time -- when the price averaged between $22 and $24. But the industrial titan’s earnings wilted last year and accounting questions surfaced, dragging its stock price down to less than $9 now.