Invesco (IVZ) - Get Invesco Ltd. (IVZ) Report and Janus Henderson Group (JHG) - Get Janus Henderson Group PLC Report were rising Friday after hedge fund Trian Fund Management said it owns stakes in the asset managers and intends to encourage them to consider strategic options like a merger.
Invesco was advancing nearly 6.5% to $11.98, while Janus Henderson was climbing 15.6% to $24.96.
Trian said in a regulatory filing that it owns 9.9% stakes in both Invesco and Janus Henderson and has spoken with both firms.
Trian said it has asked for two board seats for its co-founders Nelson Peltz and Ed Garden at Invesco. Trian said it has held "constructive" discussion with Invesco's CEO Martin Flanagan and Chief Financial Officer Allison Dukes.
The filing said Trian has spoken with Janus Henderson's non-executive Chairman Richard Gillingwater and intends to speak with the board and management about strategic and operational initiatives.
Trian has experience in asset management industry consolidation having sat on the board of Legg Mason which was purchased by rival Franklin Resources earlier this year, according to Reuters.
Trian’s $900 million investment will be partly sponsored via a long-term unreported fund, originally created with a view of consolidating the asset management space, The Wall Street Journal reported. The remaining amount will be retained in the fund until new opportunities emerge in this sector.
Separately, Comcast (CMCSA) - Get Comcast Corporation Class A Report was rising following a report that said Trian Fund Management launched an activist campaign against the cable-TV and entertainment giant, believing the stock is undervalued.
There has been a wave of consolidation in the asset management industry. In February, Franklin Resources (BEN) - Get Franklin Resources, Inc. (BEN) Report reached an agreement to buy rival asset manager Legg Mason (LM) - Get Legg Mason, Inc. Report for $50 per share, or about $4.5 billion.