Nelson Peltz hopes he can turn things around for GE

Nelson Peltz is hoping his well-worn activist-investor playbook will bring good things to life at GE.

Peltz’s Trian Fund Management, which has seen its investment in the troubled General Electric decline since when he bought into the company in 2015, is pushing the conglomerate to explore possible sales or spin-outs of many of its businesses — including those in health and power, sources told The Post.

Trian founding partner and GE director Ed Garden has been spending much time recently with GE Chief Executive John Flannery, a source said, and it is Trian that is behind GE’s decision to explore such sales, sources close to the situation said.

“We are looking aggressively at the best structure or structures for our portfolio to maximize the potential of our businesses,” Flannery said Tuesday in a call with analysts that sparked headlines.

On Tuesday, GE also announced a $6 billion write-down in its now-shuttered insurance business.

Peltz did not expect to be in this spot.

In 2015, when making a $2.5 billion investment in GE — Trian’s largest ever to that date — Peltz was acting at the behest of GE CEO and Chairman Jeffrey Immelt, sources close to the situation said.

His Trian bought in at around $26 a share. Since then, GE’s shares have burned as brightly as a 15-watt bulb.

GE shares fell 2.9 percent Tuesday, to $18.21.

For 2017, Trian generated roughly a 4 percent return, a bit lower than most of its peers, a Trian investor said.

GE is one of the main reasons for the poor performance.

Trian in 2016 posted an 11 percent return — when Peltz unloaded about one quarter of his GE stake at a price in the low-$30 range.

“It’s a massive investment that is sinking,” a source familiar with Trian’s thinking said.

Peltz had expected GE to be a growth investment lasting perhaps three years and for the shares to increase to more than $40 by the end of 2017, sources said.

Now, GE, at best, will become a successful long-term investment only if a Peltz-sparked operational turnaround is successful, sources said.

Last year, despite having less than a 1 percent stake in GE, a frustrated Peltz forced Immelt out. In November, Peltz gained a board seat and now has started treating GE like one of his historical operational turnarounds, sources said.

Peltz’s strategy in past high-profile turnarounds often included spinning off divisions. His Wendy’s restaurant chain in 2006 spun off Tim Hortons.

Also, in 2012, Peltz helped push Kraft into splitting its US and international businesses into different companies: Mondelez International and Kraft Foods.

In 2013, Peltz influenced Ingersoll Rand to spin off security business Allegion, which represented 15 percent of revenue.

At GE, Trian feels it now has the right leadership in Flannery, a source said. Flannery was named to the top spot in August.

“They like him and think he is dispassionate and critical,” the source said.

Peltz’s aim is to make GE smaller and more focused, the source said.

Trian declined to comment.