Hedge Fund Manager Nelson Peltz on Trump's Election Impact

By Svea Herbst-Bayliss

NEW YORK (Reuters) – Hedge fund manager Nelson Peltz, who supported President-elect Donald Trump, remarked that the stock market rally driven by the election is unlikely to sustain itself.

> "Trees don't grow to the sky. Definitely not uninterrupted," Peltz stated during the CNBC Delivering Alpha conference when asked about the potential for ongoing stock gains following Trump's election. He cautioned, "There will be something that will upset it."

In recent weeks, stock prices in the financial sector surged due to expectations of relaxed regulations, leading Wall Street to enjoy the benefits of what is termed the Trump trade. However, some analysts express concerns that Trump's policies could be inflationary, resulting in higher interest rates persisting for an extended period.

Peltz, who leads Trian Fund Management and previously expressed regret over voting for Trump in 2021, now shows strong support for the president. He even claims to have facilitated a meeting between Trump and Tesla CEO Elon Musk, the world's richest person, linking Musk's financial support to Trump's electoral victory.

> "I was a matchmaker," Peltz recounted, recalling how he invited Trump to breakfast with Musk during a visit to his home in 2023. He commented, "I don't know that Donald would have had this sweeping victory without Elon's help," noting Musk's political action committee invested around $200 million to aid Trump's campaign.

In return, Trump has appointed Musk and former candidate Vivek Ramaswamy to co-lead the newly established Department of Government Efficiency, which aims to implement cost reductions and governmental reforms.

> "If Donald gives him the opportunity, he will cut costs," Peltz noted, emphasizing the necessity of budget cuts.

Peltz highlighted Trump's threats of tariffs on European Union goods, which may impact various industries, as a strategic negotiating approach. He said, "The threat of tariffs will bring these guys in line," indicating that Trump's style often involves a tough negotiating position to achieve desired outcomes.