Billionaire Wharton Dropout Peltz Warns Big Tech Dominance Over

The era of a few giant tech firms controlling stock market gains is quickly coming to an end, according to activist investor Nelson Peltz.

The founding partner of Trian Fund Management — which has taken stakes in companies including Kraft Heinz Co. and Procter & Gamble Co. — said a US recession is likely, but high-quality businesses with strong cash flows will emerge more valuable after years of taking a back seat to high-flying growth stocks.

“Those are the kind of companies that we invest in,” he said on an episode of “Bloomberg Wealth with David Rubenstein’’ on Bloomberg Television. “They're really wonderful companies that generate cash.”

Peltz, 80, is known for taking large equity stakes in underperforming corporations and campaigning for changes. This year, he joined the board of Janus Henderson Group Plc, an asset manager that has struggled to retain clients after shuffling through three chief executive officers in five years. He’s also built a stake in Unilever Plc and was recently appointed as a non-executive director.