Private Equity

Trian Partners CIO says something big is happening in public equity markets

Trian CIO: Something big is happening in the public equity markets

Ed Garden, Trian Partners CIO and co-founder said a huge shift has happened with public equity markets because stock "owners are acting like owners" and becoming more involved with how companies manage their business.

"For the better part of the last 100 years, that wasn't the case," Garden said during CNBC's "Power Lunch" on Thursday. "Public shareowners felt like if they didn't like what was happening at a company, their only option was to sell."

Garden said the shift occurred as private equity firms have started to take bigger stakes in different companies, causing a transfer of wealth from public shareowners to private equity.

"Public shareowners have watched, as private equity has taken underperforming public companies, underperforming divisions of public companies and made a fortune," Garden said.

Garden said private equity firms are more likely to get on company boards and take on active roles in a company and he said, public share-owners are beginning to "move up the "ownership mentality spectrum."