Market Update: P&G Proxy FightSubmitted by Stone House Investment Management, LLC on July 21st, 2017
The following is a market update from Kirk Lunger, Stone House Lead Advisor.
Procter & Gamble has made headlines recently as its leading shareholder, Trian Fund Management, has launched a proxy fight against the consumer-products corporation.
Nelson Peltz, the CEO of Trian Fund Management, has recently requested a board seat at P&G. As the the New York-based hedge fund currently owns $3.3 billion worth of P&G stock, Peltz aims to have a direct influence over P&G management. Peltz’s goals presumably include boosting shareholder return through additional cost cutting and, potentially, splitting up the company. Despite Peltz's plans, P&G has rejected his request. While moves like this tend to lead to conflict between management and its shareholders, Trian Fund has hired former P&G CFO, Clayton Daley, as an adviser, likely to aide in Peltz’s bid to obtain a board seat.
P&G common shares closed at $88.35 as of Wednesday, July 19th, 2017. The contrast between current decisions of P&G management and directional changes, advocated by Peltz and Trian Fund, illustrate how significantly the price of P&G stock and its long-term performance can be affected by the decisions of a few people. Therefore, this is why we advocate diversifying your retirement assets. Having your entire investment portfolio in a single security can be devastating if someone drops the ball.
If you are interested in learning how to diversify your retirement assets and minimize unnecessary risks in your portfolio, please give us a call for a FREE portfolio review. We will identify your portfolio’s weak points and explain key steps you can take to strengthen your assets.
Kirk A. Lunger (pictured left) joined the team at Stone House Investment Management, LLC as an Investment Advisor Representative in 2014. He began his financial career as an accountant at Northeast Concepts, Inc. in Dallas, PA. He has always been passionate about the inner-workings of finance, business and investing, since earning a BS in Accounting from Misericordia University. As a financial advisor he loves being able to communicate those passions to his clients by guiding them through unfamiliar terrain. Kirk concentrates heavily on helping families navigate the complex retirement process; ensuring the best strategies are established to protect a client’s assets and income up to and throughout retirement. In his spare time, he loves spending his out-of-office hours on the golf course, in the outdoors, but most of all spending time with his family. It is of utmost importance to him that he offers his clients well-informed and knowledgeable assistance in reaching their financial goals and objectives.
John M. Burke (pictured middle) joined Stone House Investment Management, LLC as an Investment Advisor Representative in 2008, and currently holds the positions of Portfolio Manager, Lead Advisor, and Partner. Having previously worked for Procter & Gamble for fourteen years, he held various roles in Supply Chain, Operations & Initiative Management. John’s work in investments and financial planning started while at the University of Notre Dame where he earned a MBA degree. Since then, he has managed his own portfolios using mixes of quantitative, fundamental and technical strategies. In 2002, John also started up a successful small business.
Todd W. Shelton (pictured right) became a Lead Advisor at Stone House Investment Management, LLC in 2016. Having worked for Procter & Gamble for 10 years, Todd grew up in a P&G family with his father serving over 28 yrs as a P&G technician. He earned a degree in Mechanical Engineering from Missouri School of Science and Technology, which fostered his desire to work with others and create solutions for long term goals, even in challenging environments. Todd has a passion for coaching and helping others achieve their financial objectives. He uses his experience in the manufacturing industry to deliver a straight-forward, practical approach to the complex retirement process. When not in the office, Todd enjoys hunting, fishing, and camping with his family. Todd also enjoys being actively involved in his church.
Neither Stone House nor its representatives are affiliated with or endorsed by Procter & Gamble.
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