State Street Corporation (2010-2013)
State Street Corporation (“State Street”) is a financial services holding company offering custody and administration services, investment management, and investment research and trading services to institutional investors worldwide.
Following the financial crisis in 2009, Trian was attracted to State Street due to its depressed trading multiple. Trian believed State Street was one of the more attractive businesses in the financial services sector, and saw an opportunity to improve shareholder returns through improved capital allocation and a reduction in its cost structure.
In May 2010, Trian announced its investment in State Street and met with management to discuss its views in August 2010. In October 2011, Trian released its white paper, publicly advocating for margin targets, improved capital allocation, and an end to non-recurring charges.
By the end of 2012 investors became more confident in State Street’s ability to grow earnings given the continued improvement in the top line environment and improved management execution.
In the third quarter of 2013, Trian exited its investment in State Street.
Company Website: http://www.statestreet.com/