- On May 31st, news broke that the legendary activist investor Nelson Peltz has taken a sizable stake and has claimed a seat on the Unilever board. This is a big deal.
- Literally, the exact same catalyst occurred at rival Procter & Gamble in December of 2017, leading P&G to massively outperform Unilever during this time period (+57% to -19%).
- Mr. Peltz apparently believes that he has a similar opportunity at Unilever and has resigned from the P&G board, opening up a clear pair trade opportunity given the valuation gap.
For further details see:
With Nelson Peltz On Board, A Long Unilever, Short P&G Pair Trade Is Available