Daniel Loeb

Daniel Loeb

Last Update: 04-13-2016

Number of Stocks: 27
Number of New Stocks: 3

Total Value: $9,854 Mil
Q/Q Turnover: 10%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Daniel Loeb Watch

  • Loeb Has the Right Position and Waits for a Potential Merger

    Activist investor Daniel Loeb (Trades, Portfolio) added T-Mobile US Inc. (NASDAQ:TMUS) at a price of $25. It makes me feel that he is betting that the company could be acquired by Sprint Corp. (NYSE:S) or Dish Network Corp. (NASDAQ:DISH). So let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment opportunity.


    Strategic Acquisitions

      


  • Daniel Loeb Comments on Intrexon Corporation

    Equity Position: Intrexon Corporation (NYSE:XON) ("Intrexon") We initially invested in Intrexon in 2011 in a private round and have continued to accumulate shares since its IPO in August 2013. We believe that Intrexon is an innovation leader in synthetic biology with a unique value proposition and proven leadership team. Most attractive to us is Intrexon's potential to transform multiple industries, including the health, food, and energy markets. 


    Synthetic biology is an emerging discipline that applies engineering design principles to biologic systems. Broadly speaking, synthetic biology is about the design, modification, and regulation of gene programs to produce a desired outcome, such as the production of a novel antibody from a cell culture, the optimization of a specific gene trait in crops, or the amplification of wild type natural gas metabolism into an industrially feasible process. Over the past 15 years, Intrexon has developed deep expertise in synthetic biology as well as the adjacent fields of process optimization and data analysis to create a unique technology platform that enables the iterative, directed improvement of experimental design. 

      


  • Daniel Loeb Comments on T-Mobile

    T-Mobile (NASDAQ:TMUS) – We had the opportunity to establish a position in T-Mobile in November when the Company conducted a secondary offering at $25. The offering represented a favorable relative valuation versus peers, enhanced by recently improved relative operating performance and an attractive EBITDA growth trajectory. 


    In addition to T- Mobile's fundamental v alue proposition, the Company is strategically interesting for Sprint and potentially DISH, which has driven shares higher. The analyst community has offered mixed messages on the prospects for a merger with Sprint, indicating an unwillingness on the part of the DoJ and FCC to approve consolidation while acknowledging the significant financial and scale disadvantages Sprint and T-Mobile face and the inevitability of a combination. Perhaps the starkest examples of the reality of the U.S. wireless industry are the incredible gaps analysts expect in subscriber net additions and free cash flow between 2013 and 2015. During the same period, Sprint and T-Mobile are expected to continue to lose share on a combined basis, attracting less than 15% of industry net additions compared to their current joint subscriber market share of just under 30%. Meanwhile, AT&T and Verizon are expected to generate over $83 billion of combined free cash flow between 2013 and 2015, while Sprint and T-Mobile are expected to burn an unhealthy $10 billion of cash together as they cede market share. 

      


  • Daniel Loeb Comments on Sony

    Sony (NYSE:SNE) – While the rejection of Third Point's proposal to partially list the Entertainment business proved costly for shareholders, we are hopeful that the Company's commitment to improve transparency, increase margins, better allocate capital among divisions, and hold division management accountable will lead to our goal: increasing shareholder value. Despite the rise in the Company share price earlier in the year, Sony shares still trade significantly below their sum of the parts valuation. 


    Sony started 2014 strongly at the Consumer Electronics Show in Las Vegas, winning two best-of-show awards for PlayStation 4 and the Xperia phone. The show's highlight was news that Sony had sold 4.2 million Playstation 4's in 2013 versus 3.0 million Xbox One's. Sony appears set to sustain strong global momentum with the Japanese launch of the Playstation 4 in February. February is also rumore d to mark the launch of Sony's Xperia Z2 phone, with the potential for meaningful distribution expansion in North America and elsewhere.

      


  • Daniel Loeb Comments on Ally Financial

    Third Point has invested across the capital structure of Ally Financial (ALFI), the former GMAC, throughout the company's multi-year reorganization. Today's Ally Financial ("Ally") fits the pattern of other profitable investments we have made: a highly successful, nearly-completed restructuring that remains undervalued, with an explosive earnings story led by a talented management team who are economically aligned with shareholders.


    We invested initially in 2011 in Ally's unsecured debt and preferred securities because we believed market estimates of potential liabilities related to the company's w holly owned mortgage subsidiary, Rescap, were excessive. When Ally stopped funding its losses through direct loans and sought to distance itself from Rescap 's b allooning potential liabilities in 2012, Rescap filed Chapter 11. After nearly one year of creditor negotiations, Ally permanently settled all mortgage related liabilities for approximately $2 billion, a figure that was consistent with our expectations. During this period, Ally initiated a radical operational restructuring that included divesting all of its international operations and their associated $30 billion of assets and jettisoning Rescap, transforming Ally into a pure-play North American auto finance company with leading market share. 

      


  • Daniel Loeb Comments on Dow Chemical Company

    Third Point's largest current investment is in The Dow Chemical Company (NYSE:DOW)("Dow"). Dow shares have woefully underperformed over the last decade, generating a return of 46% (including dividends) compared to a 199% return for the S&P 500 Chemicals Index and a 101% return for the S&P 500.1 Indeed, in April 1999, nearly 15 years ago, an investor could have purchased Dow shares for the same price that they trade at today! These results reflect a poor operational track record across multiple business segments, a history of under-delivering relative to management's guidance and expectations, and the ill-timed acquisition of Rohm & Haas. The company's weak performance is even more surprising given that the North American shale gas revolution has been a powerful tailwind for Dow's largest business exposure – petrochemicals. 


    We believe that Dow would be st serve shareholders' interests by engaging outside advisors to conduct a formal assessment of whether the current petrochemical operational strategy maximizes profits and if these businesses align with Dow's goal of transforming into a "specialty" chemic als company. The review should explicitly explore whether separating Dow's petrochemical businesses via a spin - off would drive greater stakeholder value.

      


  • Daniel Loeb Third Point - Q4 2013 Investor Letter



  • Dan Loeb Takes an Active (and Large) Position in Dow Chemical - Urges Spin-Off



  • Daniel Loeb Underperforms for Year - Two Top Stocks Gain, Two Yet to Move

    While the returns of Daniel Loeb (Trades, Portfolio)’s hedge fund Third Point have far outpaced the S&P 500 on an annualized basis, this year they fell short. The fund gained 25.2% for the year, compared to the index’s 32.4%, and 2.3% for the month of December, versus the index’s 2.5%.


    By the end of the third quarter, the fund manager was finding a number of investment opportunities in instruments outside of stocks:

      


  • On Following Great Investors

    According to the press, some great activist investors such as Carl Icahn and Daniel Loeb are now selling their stakes in different companies. As a matter of fact, last week, Icahn and Keith Meister, from Corvex Management, sold their stakes at Take-Two Interactive Software (NASDAQ:TTWO) and ADT Corporation (NYSE:ADT), respectively. Meanwhile Loeb liquidated his huge position in Yahoo (NASDAQ:YHOO) earlier this year. Should you always follow great investor’s moves?

    Follow Process Not Trades   


  • Daniel Loeb's Top Five Highlighted by Yahoo! and AIG

    Daniel Loeb, the founder of the hedge fund Third Point LLC, is oftentimes known for his activist investing. The guru likes to buy such a sizeable portion of a company in order for him to make changes to the company’s structure. The guru has an excellent track record for this style of investing and is fairly well-known in the finance world for writing public letters to the boards of companies in which he expresses disapproval of the performance and workings of a company.

    During the third quarter, Loeb purchased shares in nine new companies bringing his total portfolio to 35 stocks. The value of his third quarter is at $4.001 billion. The following five companies are the guru's largest holdings as of the third quarter.  


  • Daniel Loeb’s Company of Choice in the Gaming Industry

    The gaming industry is known for its volatility and fierce competition: a major hit can launch a company to success, while a fluke could mean its demise. In such an environment, savvy investments can be made, and profits harnessed from growing companies. When Daniel Loeb became active in this industry, I was keen on finding out more about his investments in firms such as Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:EA).

    [b]A Highly Specialized Game Developer  


  • Hedge Fund Activist Daniel Loeb Buys FedEx, Sothebys, Google, Sells Yahoo, Tiffany, Walt Disney Co

    Activist hedge fund manager Daniel Loeb just reported his third quarter portfolio. With 60% long and 10% short, Loeb is underperforming the broad market. His recent activist play such as Yahoo has been working well for me. He is now exiting the position.

      


  • Daniel Loeb, Third Point Selling Update - TIF, DIS, YHOO, WCC, TMO

    The third quarter portfolio of Daniel Loeb’s Third Point LLC lists 35 stocks and a total value of $4 billion with a quarter-over-quarter turnover of 25%. Guru Loeb has bought nine new stocks, according to the GuruFocus update of Nov. 14, 2013. Loeb’s average return over 12 months is 22.53%. Daniel Loeb’s highest impact decrease for the third quarter was reducing his Yahoo! Inc. (NASDAQ:YHOO) position by 74.19%, with a portfolio impact of -26.19%. Read about Loeb’s YHOO trade.

    Here are four more high-impact sells and reductions made by Daniel Loeb in the third quarter of 2013, starting with his sell out of Tiffany & Co. (NYSE:TIF). Tiffany’s worldwide net sales were up 4% at $926 million in the second quarter of 2013. The company reported a 16% increase in quarterly net earnings at$107 million, up from $92 million in the same quarter of 2012. Earnings of $0.83 per diluted share were also up from the same quarter of 2012 at $0.72 per diluted share. Total sales for the company’s Asia-Pacific region were up 20% for the reporting quarter, compared to the Americas region, with total sales up 2%, according to a company press release.  


  • CNBC Daniel Loeb Interview - Herbalife, Sony, FedEx, Activism

    CNBC's Andrew Ross Sorkin talks to Daniel Loeb about his investments in Herbalife (NYSE:HLF), Sony (NYSE:SNE), FedEx (NYSE:FDX) and his take on activist investing:

      

  • Vanity Fair Profiles Hedge Fund Activist Dan Loeb

    Billionaire hedge-fund manager Dan Loeb calls himself an “activist investor,” but even in the rough-and-tumble financial world, his tactics—nasty, personal attacks on C.E.O.’s and colleagues—are considered extreme. After nearly losing his Third Point fund, in 2008, Loeb has come roaring back, hunting such big game as Yahoo, Sony, Morgan Stanley, and Sotheby’s. From Wall Street to Hollywood, everyone is crying foul, but as William D. Cohan reports, Loeb’s ultimate weapon may be that he doesn’t give a damn.

    Once again, in October, Dan Loeb was lobbing grenades. This time his target was Sotheby’s, the international auction house, founded in 1744, that, along with chief rival Christie’s, owns the high-end business of reselling the art, real estate, jewelry, furniture, and other knickknacks of the wealthy. Loeb, the 51-year-old founder and principal owner of the hedge fund Third Point L.L.C., is famous, or rather infamous, for such bomb throwing. Packaging them in the form of letters to corporate C.E.O.’s (and sometimes to his hedge-fund colleagues), Loeb excoriates his targets publicly, not only for their professional performance but also often for their personal behavior. The idea is to humiliate the C.E.O.’s, causing them to quit or to get fired, so Loeb can unleash his strategies for “unlocking shareholder value,” as they say in the hedge-fund world. Other hedge-funders send such letters, but most agree that Loeb’s are the nastiest and most florid.  


  • Is It Too Late to Get Into Loeb's New Trade?

    Thanks to some successful investments such as Yahoo (NASDAQ:YHOO), so far, Daniel Loeb and his investors have been able to enjoy a very profitable 2013. But one new attractive idea has appeared in Loeb's mind. In a third quarter letter to the investors of his fund, the founder of Third Point LLC made public a significant stake in Nokia (NYSE:NOK) after the Finnish company sold its money-losing handset business to Microsoft (NASDAQ:MSFT) for $7.2 billion in a deal which will most probably be materialized during this year's last quarter.

    Loeb's Reasons to Buy Nokia  


  • Daniel Loeb Comments on Nokia Corp.

    Equity Position: Nokia Corporation ("Nokia") (NYSE:NOK) We purchased Nokia late in the third quarter following the announced sale of its Devices and Services ("D&S") business to Microsoft for €5.44 billion in an all-cash transaction. Expected to close in Q1 2014, the deal provides €3.8 billion for the D&S business and €1.6 billion for a 10-year non-exclusive patent licensing agreement. Once the transaction is complete, "new" Nokia will consist of the Nokia Siemens Networks ("NSN"), the HERE maps business, and a patent portfolio known as Advanced Technologies.

    At our purchase price, we seized an opportunity to create new Nokia at a substantial discount to target value. The company will have approximately €8 billion of net cash when the transaction closes, and we expect a meaningful portion of the excess will be distributed to shareholders in coming quarters. Either a buyback or a special dividend is possible, which should draw additional investors to new Nokia when the cash return scenario develops following the deal closing.  


  • Why Diversification Is the MVP of Television Broadcasting

    The television broadcasting industry has suffered from the changes caused by technological innovation. Free internet platforms have become as popular as pay TV when it comes to video content consumption. However, while CBS Corporation (NYSE:CBS) has its business web well spun, News Corporation (NASDAQ:NWSA) seems to be swimming in a sea of uncertainty.

    [b]High Rate Programming and Advertising Gold Mine  


  • Third Point Third Quarter 2013 Letter to Investors



  • Why Getting the Fashion Right Is Important for Apparel Retailers

    Despite a recovering U.S. economy, teenage unemployment remains high. Teen apparel retailers such as Abercrombie & Fitch Co. (ANF) and Aeropostale Inc. (ARO) seek to continue growing in this unfavorable macroeconomic scenario, yet they face fierce competition. As of late, both these firms have had a hard time connecting with customers due to merchandising missteps, which have placed their business in a tough spot.

    Discount Retailer with Poor Prospects  


  • Luxury: Top Picks

    According to Credit Suisse, global wealth grew by 5% year-over-year, compared with a global decline of 5% in the prior year. According to the same research report, the US saw the biggest improvement with wealth up by 13% thanks to the recovery in property prices and the on-going rally in equity markets. Moreover, the bank expects wealth to increase by 7% per year until 2018. With this in mind, here I want to take a look at my two top luxury equity ideas.

    Resilient growth and a potential M&A target

      


  • What the Gurus Did Over the Past Week

    The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. We saw notable real time activity from Steve Mandel, Richard Perry and Daniel Loeb.

    Steve Mandel
      


  • Activist Investor Dan Loeb (Third Point) Takes Aim at Sotheby's

    Dan Loeb of Third Point is at it again. This time the target of a nasty letter is Sotheby's (NYSE:BID).

    The full letter is below:  


  • Sony's Management Should Pay Attention to Dan Loeb

    As an investor, its tough not to agree with Daniel Loeb. For years, the activist investor has been creating value for the investors of his fund, Third Point LLC, and for all the shareholders of the companies where he held a long position. This was the case for Yahoo (NASDAQ:YHOO), a position he already closed at a huge profit: Third Point bough Yahoo shares at various prices between $11 and $15 and sold its position at around $29. Now, Loeb is proposing to unlock value from Sony (NYSE:SNE), the Japanese conglomerate. Even when Sony's shares have raised by more than 90% year-to-date, I think there is still huge upside potential for the company. Let's take a look!

    A Value-Enhancing Proposal  


  • Daniel Loeb's Third Point Underperforming So Far, Top Stock Picks Excel

    Daniel Loeb’s Third Point Offshore Fund is underperforming the market this year, having returned 15% versus the S&P 500’s 16.1% return through Aug. 31. For the month of August, the fund fell 0.7%, less than the S&P’s 2.9% decline. While other strategies may be lackluster at the moment, the hedge fund manager’s stock picking strength is seen in his top five positions, which are all well into positive territory this year. The other strategies remain unknown as Loeb ceased reporting his top five overall positions (including shorts, currency plays and others) back in May.

    As of June 30, his top long stock picks having a stellar year are Yahoo Inc. (NASDAQ:YHOO), American International Group (NYSE:AIG), Liberty Global PLC (NASDAQ:LBTYA) and Thermo Fisher Scientific Inc. (NYSE:TMO).  


  • Betting on Luxury

    I have always liked the luxury goods market. The reason is simple: The sector's growth is tied to wealth creation in emerging markets. Countries like Brazil and China are generating a huge amount of wealthy families every year. Consolidation is also helping investors in the luxury goods space. Huge conglomerates such as LVMH Moet Hennessy Louis Vuitton (OTH:LVMUY) are constantly buying highly appreciated smaller companies such as Loro Piana, the Milan-based cashmere company which was bought for 2.7 billion euros a few months ago. Here I will take a look at two independent luxury goods companies that I believe could constitute M&A targets going forward.

    Shinier Than Diamonds
      


  • Daniel Loeb Buys Sotheby’s Stake in Winning Streak

    Some of his high-profile hedge fund colleagues have experienced mixed results from their activist investments recently, but Daniel Loeb has been on a fairly good streak with his biggest bets such as Yahoo (NASDAQ:YHOO) and Herbalife (NYSE:HLF). This week he dove into his next project: art auction house Sotheby’s (NYSE:BID).

    Reported on Monday, Loeb purchased a 5.78% stake in the company, equaling 3,925,000 shares, according to GuruFocus Real Time Picks. The 13D filing states that he accumulated the shares in a series of purchases and sells taking place from June 26 through Aug. 23. His purchase prices ranged from $37.64 to $45.76.  


  • Daniel Loeb’s High Impact Selling - YHOO Shares 62M and Second Quarter Update

    Guru Daniel Seth Loeb is the founder and CEO of Third Point LLC, a hedge fund based in New York. His portfolio update lists 33 stocks with six new stocks. The total value is $4.41 billion, with a quarter-over-quarter turnover of 25%. His portfolio is currently weighted with top three sectors: consumer cyclical at 12%, financial services at 10.1% and communication services at 8.1%.

    On the sell side, Loeb just made a huge reduction on his Yahoo Inc. (NASDAQ:YHOO) holding in third quarter trading, as well as 22 sells or reductions in the second quarter of 2013. Here are recent selling highlights on trades that have made the highest impact on his portfolio.  


  • Daniel Loeb's Second Quarter Increases

    Daniel Loeb is a renowned hedge fund manager and the founder and chief executive of Third Point. During the second quarter, Daniel Loeb bought six new stocks bringing his total number of stocks to 33 valued at $4.414 billion.

      


  • Daniel Loeb Comments on Yahoo

    Equity Position: Yahoo (YHOO)

    Last week, we sold approximately two-thirds of our stake in Yahoo. In addition, the three Third Point nominees to the company's Board of Directors –Daniel Loeb, Harry Wilson, and Michael Wolf – submitted their resignations as required by the settlement agreement ending our proxy contest in 2012. We continue to hold approximately 20 million shares and the investment's IRR is just over 50%since inception.  


  • Daniel Loeb Comments on CF Industries

    Equity Position: CF Industries (CF)

    CF Industries is North America's largest nitrogen fertilizer manufacturer and one of the lowest-cost producers globally. CF currently trades at an unwarranted discount to fertilizer and commodity chemical peers. We believe its structural cash flow generation strength is misunderstood and that management should deliver a much larger dividend to its shareholders. Such a dividend would highlight the sustainability of its cash flow generation and lead to a substantial re-rating.  


  • Daniel Loeb Comments on Sony Corporation

    Equity Position: Sony Corporation (SNE)

    Third Point acquired a significant stake in Sony Corporation ("Sony") earlier this year, and in May, we unveiled a proposal to increase value by partially listing Sony's Entertainment ("Entertainment") business in the U.S. Our investment thesis is that Sony – composed of Electronics, Finance, and Entertainment – is not well understood by investors and is therefore significantly undervalued. Sony's Entertainment division has leading franchises in movie and television production and distribution via Columbia Pictures and Sony Pictures Television, and is one of the top recorded music and publishing companies in the world. Sony also has coveted global cable network assets, including a strong position in the fast-growing Indian market. Electronics is best known for its struggling televisions and VAIO computers but its true value lies in its strong semiconductor and video game console divisions, and its resurgent smartphone business. At the time we made our initial investment, we believed that at our purchase price we were acquiring Entertainment at an attractive value while receiving Electronics nearly for free, giving us a substantial margin of safety.  


  • Daniel Loeb's Third Point Second Quarter 2013 Investor Letter

    Review and Outlook: Third Point's opportunistic approach and robust framework allow us to search globally for attractive event-driven equity and credit opportunities and occasional"macro" trades. Our broad mandate has made it increasingly essential to study economic trends and attempt to identify key areas to dedicate our resources. Over our eighteen years, this flexibility has given us the ability to avoid (or short) asset classes that become overvalued, such as tech stocks in the bubble of the late '90s or credit leading up to 2007, and to press bets in areas that become oversold. As a result, our portfolio is built not only by reacting to special situations that arise, but also from top down insights.

    At our Investor Presentation in February, we outlined four key developments we expected would lead to interesting investment ideas in 2013: a) increasing allocations to equities as a consequence of a more benign macro environment; b) a re-rating of stocks due to improving global economic growth; c) a resurgent Japan; and d) an increase in merger and acquisition activity reflecting rising corporate confidence. More than halfway through the year, all of these developments have played out as expected, and a majority of our profits have come from event-driven investments in American and Japanese equities.  


  • Guru Real Time Activity Update for the Week of July 22 to 26

    The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios.

    The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they owns a greater-than 5% stake, SEC regulations require them to report their transaction within two days. Mario Gabelli, George Soros and Daniel Loeb all reported real time stock picks over the past week.  


  • Daniel Loeb Sells 40 Million Shares of Yahoo

    On July 22 Daniel Loeb decreased his position in Yahoo! (YHOO) by 66.77%. The guru sold a total of 41,400,000 shares at an average price of $29.11 per share. This sell comes as Yahoo! announced that they would be repurchasing 40 million shares held by Loeb’s fund, Third Point. The purchase price equaled the closing price of Yahoo! common stock on July 19.

    Since this sell, the price per share has dropped approximately 3%. As of the first quarter Loeb held 5.63% of the company’s shares outstanding, but as of his most recent sell he holds 1.87% of Yahoo’s shares. Daniel Loeb now owns 20,600,000 shares of Yahoo!, keeping him as the top guru shareholder.  


  • Daniel Loeb’s Third Point Trails S&P in First Half, But Top Stocks Doing Great

    Daniel Loeb does not have to worry much about his Third Point Offshore Fund trailing the S&P for a few quarters: His 10-year cumulative return is 352.2% compared to 99.7% for the index. For the first half of the year he has slightly underperformed the S&P 12.6% to 13.8%, after reporting a 1.8% loss for June compared to the S&P’s 1.3% loss.

    The reason for the margin is not readily clear, as Loeb ceased disclosing his fund’s top positions in his monthly reports in May. Holdings such as gold (down 26% year to date), short positions, macro positions or government bonds, which are not listed in SEC filings, may be weighing on overall returns. In May, the last time he openly reported his “top losers,” gold and two shorts appeared in the list.  


  • Dan Loeb (Third Point) June 2013 Investor Report



  • Third Point's Dan Loeb Increases His Bet on Sony and Writes a Second Letter to Management

    Below is Dan Loeb's second letter to Sony Management (NYSE:SNE) where he discloses that he has upped Third Point's position in Sony to $1.4 billion and reiterates his opinion on the direction the company should take.

    Mr. Kazuo Hirai  


  • 3 Stocks Dan Loeb Has Been Buying

    Move over Mr. Ackman.

    Dan Loeb of Third Point is the new man in town taking the activist crown.  


  • Third Point's (Dan Loeb) Letter to Sony Management



  • Daniel Loeb's Top Three Increases of the First Quarter

    Billionaire Daniel Loeb of Third Point LLC has a portfolio consisting of 40 stocks, 12 of those being new buys, valued at $5.3 billion. Loeb is well known in the financial world for writing public letters in which he expresses disapproval of the performance and conduct of other financial executives. In 2012 the guru reported a return of 21.2%, an excess gain of 5.8% over the S&P 500’s return.

      


  • Daniel Loeb Adds 3 New Buys to Top 10

    Daniel Loeb is an activist investor who has recently suggested a few ideas to top holding Sony (NYSE:SNE), via a less strongly worded letter to top management than usual. He could be out to replicate his success with Yahoo (NASDAQ:YHOO), a sleepy company he shook up and then watched rise 75% in stock price the past 12 months. Loeb’s 10.5% return through April lagged the S&P 500 index’s 12.7%, though his annualized return since the inception of Third Point, his event-driven hedge fund, is 17.9%, compared to 6.6% for the S&P 500.

    In his first quarter letter, Loeb said, “Consistent with our approach over the past few quarters, we have approximately half the equity exposure of the market and vary our net and gross dynamically. We are continuing to find interesting event‐driven opportunities in equities, credit and currencies.”  


  • Third Point Update and Top Three

    Highest-earning hedge fund managers are in the spotlight this week as many of the investor Gurus have found a place on the new “Rich List” released by Institutional Investor’s Alpha. Third Point’s letter-writing shareholder activist founder Daniel Loeb is No. 10 on the Rich List, and is reported to have earned $380 million in 2012.

    In first quarter Loeb’s fund Third Point made around $50 million on his $200 million Herbalife bet, according to WSJ, listing Herbalife Ltd. (NYSE:HLF), Yahoo (NASDAQ:YHOO) and Virgin Media (NASDAQ:VMED) as the fund’s top performers. Virgin Media (NASDAQ:VMED) is up 127% over 12 months, while Herbalife (NYSE:HLF) is down 4% over 12 months. Here’s a current look at Daniel Loeb’s other top holdings.  


  • Large Insider Sells Reported in the Entertainment Industry

    This week we saw an increase in insider sells coming from the entertainment industry. The following three companies represent the largest sells coming from two or more of their corporate executives.

    1. Virgin Media (VMED)  


  • WellPoint (WLP) - A Comprehensive Value Analysis

    Putting Politics Aside to Make Money


    As value investors, we look for consistent growth in a wonderful business that is currently selling at a discount. I believe that the market is offering WellPoint Inc. (WLP), an established health insurance provider, at a discount to its value.

      


  • 'Macro Tourist' Trade

    What do Daniel Loeb and Bill Ackman have in common? Both are well known for their hedge fund activist investing. Loeb in the ensuing years has transitioned from activist to macro hedge fund manager; evident from his stellar return in Greek government bonds and most recently, from the Japan trade (initial currency/index trade). Ackman, despite his recent hiccup in few investments such as J.C. Penney (NYSE:JCP) and Herbalife (NYSE:HLF), had also dabbled in macro investing such as in Hong Kong dollar back in 2011. As Ackman put it recently, “The current printing of money is a 'non-sustainable' situation." Hong Kong should adjust is currency peg, he said, and he has a small position essentially shorting it.

    There is no such thing as an unblemished track record, unless you run a Madoff scheme. Interestingly, while Loeb is short JPY and long JPY index/selected stocks, Kyle Bass has dubbed anyone who is long JPY stock is a “macro tourist.” Bass has taken a short position in Japanese Government Bonds (JGB) since 2010. It remains to be seen if the widow-maker trade will eventually pan out. Nonetheless, as George Soros succinctly puts it, "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."  


  • Rolling Stone - Dan Loeb Simultaneously Solicits and Betrays Pension Funds

    There's confidence. There's chutzpah. And then there's Dan Loeb, hedge fund king extraordinaire and head of Third Point Capital, who's getting set to claim the World Heavyweight Championship of Balls.

    On April 18, Loeb will speak before the Council of Institutional Investors, a nonprofit association of pension funds, endowments, employee benefit funds, and foundations with collective assets of over $3 trillion. The CII is an umbrella group that represents the institutions who manage the retirement and benefit funds of public and corporate employees all over America – from bricklayers to Teamsters to teachers to employees of Colgate, the Gap and Johnson and Johnson.  


  • Daniel Loeb Comments on Liberty Global

    During the First Quarter, we increased our exposure to Liberty Global (LBTYA), Europe's largest cable operator, following the announcement of its acquisition of Virgin Media (VMED). The acquisition triggered a wave of investments by arbitrageurs, who created an attractive entry point for us by putting pressure on Liberty Global's shares. Initiating a position in Virgin Media allowed us to purchase additional Liberty Global at a material discount to its pre‐announcement and pro forma trading levels.

    Our initial interest in Liberty Global was spurred by multiple catalysts and favorable geographic tailwinds. Relative to the United States cable market, Europe offers materially higher volume growth, lower churn, and meaningful penetration opportunity. Before yearend, we expect catalysts in the stock to include the closing of the VMED deal, the initiation of a substantial buyback plan, and the unveiling of accretive wireless and B2B initiatives. The wireless market in Liberty's key Western European markets generates over $73 billion of annual revenue, presenting Liberty with the opportunity to redefine the MVNO market, leveraging a unique WiFi footprint, full back office and system control, and attractive quad play bundles. Liberty also appears poised to ramp up its B2B efforts, particularly in Germany.  


  • Daniel Loeb's Q1 Letter - Comments on Liberty Global, Japan, International Paper, Mortgages

    Important Note to Our Investors and Unintended Recipients: Third Point's Quarterly Letters are designed to inform our investors about recent portfolio developments and provide our views of the market environment. Our letters are not investment recommendations for the general public. The legal disclaimer makes clear that we may trade in and out of positions discussed at any time and undertake no duty to update anyone, except to the extent we are required to make filings with the SEC. Investors who choose to take action based on our investment ideas do so at their own risk.

    Review and Outlook  


  • Daniel Loeb Comments on Tesoro Corporation

    Tesoro Corporation (NYSE:TSO) is a $5.7 billion refining and marketing company with assets in the West Coast and Rocky Mountain regions of the US. Tesoro has several characteristics we like in an investment: 1) significant hidden value in high-multiple assets like retail, pipelines, and General Partner interests; 2) impending transactions/projects that are underappreciated by the market; and 3) a shareholder-friendly management team focused on creating value. While it is perhaps unusual to invest in a company following a quarter(Q3 2012) in which the stock appreciated by ~68%, we believe Tesoro remains misunderstood by the market; as evidence, current sell-side analyst price targets range from $35 to $84!  


  • Daniel Comments on Morgan Stanley

    During the Fourth Quarter, we initiated a position in Morgan Stanley (NYSE:MS), which we believe is in the early innings of a turnaround. The bank’s investment banking advisory and equity sales and trading businesses – which we know well from our perspectives as both investors and long-time satisfied clients – have consistently won top three market shares and are impressively positioned. Although MS has historically failed to capitalize on its strengths, its leadership currently is focused on growing its good businesses while consolidating and successfully fixing its previously troubled Wealth Management business.In 2013, we expect Morgan Stanley to tackle its other weak business, Fixed Income, Currency, and Commodities (FICC) sales and trading. Morgan Stanley’s stock currently trades at a 20% discount to tangible book (down from a 35% discount when we acquired our stake at an average cost of $16.77 per share), and we view MS at these prices as a chance to buy a free call option on a promising restructuring.  


  • Daniel Loeb Comments on Herbalife

    Herbalife (NYSE:HLF) is a leading provider of weight management and nutritional supplements operating in more than 80 countries through a network of independent distributors. The stock declined by nearly half last month following controversial assertions made by a short seller about Herbalife’s business model and practices. Third Point has a different view and holds about 8% of Herbalife outstanding common stock, which we acquired mostly during the panicked selling that followed the short seller’s dramatic claims.

    Based on its strong financial performance, Herbalife is a classic “compounder” – a well-managed company that sustains consistent top-line growth, has a leading market position,and steadily increases margins, earnings per share and free cash flow while demonstratingshareholder-friendly behavior. Since going public in 2004, Herbalife has increased revenueat a double digit rate for seven of the past eight years, expanded gross and operating margins, leveraged operating expenses, and introduced more premium products. Earnings per share have increased by approximately 20-50% each year since 2004, with the exception of 2009. Led by CEO Michael Johnson, management has also used the company’s ample free cash flow to de-lever its balance sheet and shrink the share count by nearly 25%. This type of steady non-cyclical growth is hard to find and puts Herbalife at the head of the compounders’ class.  


  • Daniel Loeb Comments on Murphy Oil

    As we explained in our Third Quarter Letter, Third Point initiated a significant stake in Murphy (NYSE:MUR) following a 3-year period in which Murphy's share price declined by ~15% while the SPDR S&P Oil and Gas E&P Index appreciated by ~49%. Our thesis was that the company had many routes to unlock latent, meaningful value, among them – and most significantly – a highly accretive spin-off of its retail business.

    Two weeks after our letter, Murphy's management announced a series of shareholder-friendly initiatives that have been met with market enthusiasm. In addition to announcing a separation of the retail business via a tax-free spin, management unveiled a $1 billion share repurchase program and a $2.50 per share special dividend. While we applaud these first steps, we expect the company to announce further moves to address its still-depressed valuation, including sales of its Montney asset and 5% stake in Syncrude. Natural gas acquisition activity in Western Canada has continued vigorously since we called for the sale of the Tupper asset, and recent deals in the space have confirmed our valuation expectations.  


  • Daniel Loeb Beats the Market with Yahoo, Japan and Cheniere Energy

    In a difficult quarter for hedge funds, and rather pleasant one for the S&P 500, Daniel Loeb bested the market with a 13.3% in his Ultra Fund in the first three months of the year, according to CNBC. By comparison, the S&P returned 10%, and the average hedge fund eked out just 3.13%. Loeb, the leader of hedge fund Third Point well known for his stormy business shakeups in his activist investment targets and event-driven investment strategy, saw several points of his strategy blossom this year.

    Yahoo! Inc. (NASDAQ:YHOO)  


  • Third Point (Dan Loeb) Q4 2012 Letter



  • Daniel Loeb Reports New Top Position – Virgin Media

    Aside from arguing with Bill Ackman about Herbalife (NYSE:HLF), the founder of $11.6 billion hedge fund Daniel Loeb in February acquired a new second-largest position, Virgin Media (NASDAQ:VMED), according to his fund’s monthly update. The position sits underneath Yahoo (NASDAQ:YHOO), meaning it must have less than a 26.6% weighting in his portfolio, and above physical gold.

    Virgin Media’s market price has increased almost 30% year to date, trading at $47.63 per share on Monday, placing it at Third Point’s second “top winner” of the month, in which his Offshore Fund returned 1.2%, compared to 1.2% for the S&P. Third Point was up 6% for the year through the end of February, also trailing the S&P’s 6.6%.  


  • Market Cycle Analysis & Five-Year Rolling Analysis of Guru Performance

    Market Cycle Analysis In our research of John Hussman’s performance, we observed that he underperformed the market if we look at the latest 3-year annualized return, 5-year annualized return and even 10-year annualized return. Yet this might not be the case if we look at his performance over a complete economic cycle.

    We believe that the performance over fixed time periods, like the latest 3-year, 5-year and 10-year, might be misleading since a single bad year performance would ruin all. Therefore, we believe the best way to measure funds’ performance is to check the performance number over complete market cycles.  


  • Vanity Fair's Story on Bill Ackman, Featuring Bike-Ride Meltdown

    Editor’s Note: There is as much ego as money behind Dan Loeb and Bill Ackman’s battle over the nutritional company Herbalife (NYSE:HLF). The story of their cycling trip from Bridgehampton to Montauk, which has practically achieved urban-legend status in the hedge-fund eco-system, provides a vivid example of what is at stake for the two former friends. Vanity Fair contributing editor William D. Cohan gets Ackman's response on the ride in a story on the rivals that will appear in the April issue. Read an excerpt here—the full story will be released next week.

    The supremely confident billionaire hedge-fund manager Bill Ackman has never been afraid to bet the farm that he’s right.  


  • Dan Loeb Reduces Largest Holding, Yahoo!

    Daniel Loeb reduced his position in largest holding Yahoo Inc. (NASDAQ:YHOO) by 15.07% on Feb. 1, 2012, according to GuruFocus Real Time Picks. After the sale, he owns 62,000,000 shares. The founder of hedge fund Third Point LLC began building his 6.17% Yahoo stake in the third quarter of 2011 when the price averaged about $14 per share. Loeb chose to trim the position after a strong rally in the stock, implying he may believe its current three-year high share price is near its intrinsic value.

    Yahoo shares began to move in October 2012, and have gained 21% in the last six months to date. On Monday, the price fell 2.13% to close at $19.34 a share, giving Loeb a substantial gain.  


  • Apple – The Guru Winners, Losers and Buyers on Stock Pullback

    Apple (NASDAQ:AAPL)’s stock has gone from bad to worse this year, plunging 12% already this afternoon to $453 a share, significantly off of its 52-week high of $705 reached in September. Only recently talk abounded that Apple would hit $1,000 per share, and perhaps achieve first company with a trillion-dollar market cap status. Some GuruFocus Gurus escaped just in time, others lost, and still others are greeting this as a temporary market dip before Apple continues on to greatness.  


  • Loeb Rumored to Short Nu Skin, Herbalife Rival

    After taking an 8 percent stake in Herbalife (NYSE:HLF) earlier this month, a company that’s on several hedge fund managers’ shorting lists, including Pershing Square’s Bill Ackman, activist investor Daniel Loeb of Third Point has allegedly made a baffling decision to short Herbalife rival, Nu Skin Enterprises (NYSE:NUS).

    Nu Skin is a company that produces and sells anti-aging and nutrition products. And just like Herbalife, it operates through a multi-level marketing business model.  


  • An Overview of the Herbalife Events Between Ackman and Loeb

    The first great financial war of 2013 has started, and it has nothing to do with Greek bonds or the debt ceiling or the Grand Bargain. Instead, it’s a hedge-fund-on-hedge-fund brawl about multilevel marketing of weight-loss supplements.  


  • Can Yahoo be a Tech Leader Again?

    During the third quarter of 2012, David Einhorn, Daniel Loeb, Joel Greenblatt and Ray Dalio bought into Yahoo (NASDAQ:YHOO), one of the leading providers of Internet information. The company was once the leading information website before competitors came along and found a way to deliver better results. Then an outdated platform eventually did Yahoo in. Consumers quickly gravitated towards newer and more reliable websites that offered a better search engine. Yahoo, furthermore, became irrelevant as most people who worked for the company were incompetent or appeared uninterested in reviving its business. Yahoo became nothing more than a stagnant business that offered nothing but inferior qualities and little to no advantages over its closest competitors.

    But this has all started changing recently with a revamped management team more serious and focused on reviving Yahoo, a renewed willingness to invest and grow company resources, and a surplus of cash that increases the company’s flexibility. Yahoo could be gaining steam for the following reasons:  


  • Talks of Carl Icahn Getting a Piece of Herbalife, Joining Loeb in Long Position

    After fellow activist investor, Daniel Loeb set off the media earlier this week with his declaration to obtain a long position in Herbalife (NYSE:HLF), a company that Pershing Square’s Bill Ackman just shorted weeks ago, corporate raiding Guru Carl Icahn has been reported yesterday afternoon of joining Loeb in taking a piece of the action.

    Herbalife, a nutritional supplement company that uses a multi-level marketing approach, was labeled a pyramid scheme by Ackman days before Christmas, dropping the stock down more than 15 percent. A few weeks have gone by, along with Loeb’s initiation, and the stock is seen slowly recovering. The stock is down only 0.64 percent Friday morning.  


  • Herbalife's President Appears on CNBC to Refute Ackman's Claims

    What a start to 2013! Ackman goes public in grand fashion with a 9 million-page short presentation on Herbalife (NYSE:HLF) promising to dedicate his profits to charity.

    Then to make things even more interesting, both Daniel Loeb and now Carl Icahn have taken the long side of Herbalife. Icahn and Ackman have long had a real hate for each other, so this story is going to be one for the ages.  


  • Bill Ackman Comments on Dan Loeb's 8 Percent Herbalife Stake



  • Daniel Loeb Comments on Murphy Oil

    Murphy Oil (NYSE:MUR)
    As we explained in our Third Quarter Letter, Third Point initiated a significant stake in Murphy following a 3-year period in which Murphy’s share price declined by ~15% while the SPDR S&P Oil and Gas E&P Index appreciated by ~49%. Our thesis was that the company had many routes to unlock latent, meaningful value, among them – and most significantly – a highly accretive spin-off of its retail business.  


  • Daniel Loeb Comments on Tesoro Corporation

    New Equity Position: Tesoro Corporation
    Tesoro Corporation (NYSE:TSO) is a $5.7 billion refining and marketing company with assets in the West Coast and Rocky Mountain regions of the US. Tesoro has several characteristics we like in an investment: 1) significant hidden value in high-multiple assets like retail, pipelines, and General Partner interests; 2) impending transactions/projects that are underappreciated by the market; and 3) a shareholder-friendly management team focused on creating value. While it is perhaps unusual to invest in a company following a quarter (Q3 2012) in which the stock appreciated by ~68%, we believe Tesoro remains misunderstood by the market; as evidence, current sell-side analyst price targets range from $35 to $84!  


  • Daniel Loeb Comments on Morgan Stanley

    New Equity Position: Morgan Stanley
    During the Fourth Quarter, we initiated a position in Morgan Stanley (NYSE:MS), which we believe is in the early innings of a turnaround. The bank’s investment banking advisory and equity sales and trading businesses – which we know well from our perspectives as both investors and long-time satisfied clients – have consistently won top three market shares and are impressively positioned. Although MS has historically failed to capitalize on its strengths, its leadership currently is focused on growing its good businesses while consolidating and successfully fixing its previously troubled Wealth Management business. In 2013, we expect Morgan Stanley to tackle its other weak business, Fixed Income,Currency, and Commodities (FICC) sales and trading. Morgan Stanley’s stock currently trades at a 20% discount to tangible book (down from a 35% discount when we acquired our stake at an average cost of $16.77 per share), and we view MS at these prices as a chance to buy a free call option on a promising restructuring.  


  • Daniel Loeb Comments on Herbalife

    New Equity Position: Herbalife (NYSE:HLF): Herbalife is a leading provider of weight management and nutritional supplements operating in more than 80 countries through a network of independent distributors. The stock declined by nearly half last month following controversial assertions made by a short seller about Herbalife’s business model and practices. Third Point has a different view and holds about 8% of Herbalife outstanding common stock, which we acquired mostly during the panicked selling that followed the short seller’s dramatic claims.

    Based on its strong financial performance, Herbalife is a classic “compounder” – a well-managed company that sustains consistent top-line growth, has a leading market position, and steadily increases margins, earnings per share and free cash flow while demonstrating shareholder-friendly behavior. Since going public in 2004, Herbalife has increased revenue at a double digit rate for seven of the past eight years, expanded gross and operating margins, leveraged operating expenses, and introduced more premium products. Earnings per share have increased by approximately 20-50% each year since 2004, with the exception of 2009. Led by CEO Michael Johnson, management has also used the company’s ample free cash flow to de-lever its balance sheet and shrink the share count by nearly 25%. This type of steady non-cyclical growth is hard to find and puts Herbalife at the head of the compounders’ class.  


  • Daniel Loeb’s Top 3 Growth Stocks

    Increasingly, legendary activist investor Daniel Loeb, founder of New York-based hedge fund Third Point LLC, has long locked-in his reputation in the investing world largely by stirring media controversy through his very public shareholder letters that boldly highlight his aggressive attempts to push for change and replenish company board seats.

    Case in point, Loeb’s successful proxy contest with Yahoo (YHOO) last year, penning letters mocking, in his words, Yahoo’s “crappy interface” and “stupid logo,” as well as expressing that Yahoo “had one of the most horrendous management teams” he’d ever seen.  


  • Daniel Loeb Counters Bill Ackman by Taking 8 Percent Herbalife Stake

    “Event-driven value investor” Daniel Loeb viewed Herbalife (NYSE:HLF)’s stock price drop due to Bill Ackman’s $1 billion short announcement as an opportunity to buy a lot of the company. GuruFocus Real Time Picks reports that Loeb has purchased 8.9 million shares of Herbalife, an 8.24% stake in the company, on Jan. 3, 2012. He filed a 13G with the SEC, meaning he does not have activist intentions.

    Shares of Herbalife tumbled as low as 38% in December after Bill Ackman unveiled Pershing Square’s short position in the company. On Dec. 20, Ackman lambasted Herbalife in a 342-slide presentation at a Sohn Conference event in New York, calling it a “pyramid scheme” and saying that it preys on the most vulnerable, low-come segments of society. He has even set up a website dedicated to unmasking its supposed business transgressions.  


  • Daniel Loeb Up 21 Percent on Wins in Greek Bonds, Yahoo, AIG

    Daniel Loeb’s Third Point hedge fund, which has $10.1 billion in assets under management, has achieved a 21.2% year-to-date return, compared to 16% for the S&P 500. This is after gaining 3.6% in December, outpacing the S&P’s 0.9%. The outperformance was driven by his best-performing investments: Greek government bonds, Yahoo! Inc. (NASDAQ:YHOO) and American International Group (NYSE:AIG). Loeb describes his firm as event-driven value investors.

    Greek Government Bonds
      


  • SolarCity’s IPO Up and Running, Gurus Who Own Competing Companies Brought to Light

    Trading under the stock symbol SCTY as of this morning, “clean energy” provider SolarCity appears to be experiencing positive activity in the market so far, as its stock has surged nearly 30 percent over its $8-a-share initial public offering price. The company had delayed its IPO by a day because it struggled to decide on a price for its 11.5 million offered shares. Upon reaching a decision, SolarCity shares, which opened at $9.25, now trades at $11.84 — its highest for the day so far was $12.70.

    With a market cap of around $600 million reported by CNN, SolarCity is a company that installs solar panels for its clients, spanning from 14 states, through 31 operations centers (solarcity.com). Its business model is set apart from other solar companies, being that it is the only company that finances its own services of installing rooftop solar systems in exchange for long-term monthly payments from its customers, without involving third parties. The company, whose chairman is Tesla Motors (TSLA)'s Elon Musk, also provides additional services including energy efficiency evaluations, electric vehicle charging services, energy monitoring software and battery storage solutions.  


  • Daniel Loeb Reshuffles Portfolio – Murphy Oil, Kraft, Nexen, Symantec Biggest Buys

    Daniel Loeb, who routinely kills in the market at his New York-based, $8.7 billion hedge fund Third Point LLC, has updated his third quarter portfolio. The largest positions to join his portfolio in the quarter include Murphy Oil Corp. (NYSE:MUR), Kraft Foods Group (KRFT), Nexen Inc. (NYSE:NXY), Symantec Corp. (NASDAQ:SYMC) and Wesco International (NYSE:WCC).

    The manager has beat the S&P 500 43% to -1.1% cumulatively in the last five years targeting undervalued companies and, often, firing critical letters at their underperforming executives.  


  • Loeb’s Top Stocks Not Discussed in His Q3 Letter - Yahoo, Gold, Apple

    Daniel Loeb, founder of $9.3 billion hedge fund Third Point, on Tuesday announced his September top positions in his monthly report: Yahoo (NASDAQ:YHOO), AIG (NYSE:AIG), Gold (GLD), Apple (NASDAQ:AAPL), Murphy Oil Corp. (NYSE:MUR) and Greek government bonds. He did not specify which were long or short positions. From January to the end of the third quarter, Loeb’s fund returned 10.9%, compared to 16.4% for the S&P 500. He also has a 17.2% annualized return since inception, compared to 10% for the S&P.

    Yesterday, Loeb published his third quarter letter, in which he gave his analysis of the markets and several of his holdings. He said he is confident in the positions he holds amidst continued macroeconomic and political uncertainty, and has increased capital concentration in his best ideas. “Our portfolio is filled with compelling, attractively-valued, catalyst-oriented situations that are appropriately sized to our convictions,” he wrote. A portfolio of short positions is set to protect against unforeseen volatility.  


  • Daniel Loeb Comments on AIG

    Equity: AIG (NYSE:AIG)
    We originally purchased AIG shares in March after identifying the US Treasury’s impending sales of its AIG holdings as an instance of one of our favorite types of investments: “forced” (or non-economically-motivated) selling. We determined Treasury was both anchored to its $29 cost basis and intent on exiting its position as soon as possible, allowing us to purchase AIG at a discount to intrinsic value. In addition to the forced selling dynamic that created the opportunity, we believed AIG’s substantial capital return – manifested as buybacks in the Treasury’s offering – provided downside protection. Finally, we also liked the technical bid for AIG shares coming out of the offering, as its index weighting would increase with the reduction in government-owned shares, forcing index-sensitive investors to grow their position in the equity.  


  • Daniel Loeb's Third Point Comments on Murphy Oil

    Long Equity: Murphy Oil (NYSE:MUR)

    Although we've come to the end of the road  


  • Dan Loeb's Third Quarter 2012 Third Point Investor Letter

    Review and Outlook: After a poor Second Quarter in which fears about macroeconomic contagion caused a capital flight from risk assets, the Third Quarter rewarded stock picking and event-driven situations. Mirroring the First Quarter of this year, our portfolio benefitted from strength across strategies, geographies, and sectors. We matched the market’s 6.4% gain with significantly less exposure. Remarkably, our best performer was a special situation investigative short which imploded, declining over 50% and contributing nearly 1% to results. Core positions like Delphi (DFG), Ally Financial (GMSPZ) and Gold (GLD), which suffered in the Second Quarter, rebounded along with the markets.

    As we discuss in more detail below, the Third Quarter provided many opportunities to initiate or size up high-conviction positions. Following an analysis of our performance for the past several years, we have both reduced our overall number of positions and increased the concentration of capital invested in our “best ideas.” We expect that the decrease in our equity book’s diversification should produce improved but “chunkier” returns, and thus a moderate but acceptable increase in volatility.  


  • Third Point's Daniel Loeb Reveals New Positions, Including Greek Government Bonds

    Third Point’s Daniel Loeb issued his September fact sheet containing his top current positions: Yahoo! Inc. (NASDAQ:YHOO), American International Group (NYSE:AIG), Gold, Apple Inc. (NASDAQ:AAPL), Murphy Oil Corp. (NYSE:MUR) and Greek government bonds.

    The positioning shows that Kraft Foods (KFT) has moved out of his top holdings since last month, replaced by new top positions Murphy Oil and Greek government bonds. Loeb lists the bonds as third in his list of top five winners for the month. The positions in Apple, Murphy and Greek government bonds are of approximately equal size, he says. In a 13F amendment released today, Loeb discloses that the size of his Murphy stake is 1.5 million shares.  


  • How Smart People Go Bankrupt

    I just read the book “When Genius Failed” by Roger Lowenstein and can’t help writing about the story. I have tried to shorten it as much as possible but I fear that I may have overreached at several places. I recommend that the book be read in its entirety.

    Our story begins in 1988. John Meriwether (henceforth called JM), an MBA from University of Chicago, was the head of bond trading and also held the post of vice chairman at Salomon Brothers, a Wall Street investment bank which would be acquired by Travelers in 10 years.  


  • Daniel Loeb’s Top 5 New Stocks

    Daniel Loeb, founder of Third Point LLC, a New York-based hedge fund managing over $2.3 billion in assets, bought 22 new stocks in the second quarter for his portfolio of 40 stocks. Read his thoughts on the market and his holdings in his second-quarter letter here.

    The largest new buys are: UnitedHealth Group (NYSE:UNH), News Corp. (NASDAQ:NWSA), Cabot Oil & Gas Corp. (NYSE:COG), Plains Exploration & Gas Corp. (NYSE:PXP) and Coca-Cola Enterprises (NYSE:CCE).  


  • Daniel Loeb Comments on Progress Energy Resources Corp

    From Third Point's second-quarter letter:

    Long Equity and Debt: Progress Energy Resources Corp.  


  • Daniel Loeb Comments on Delphi

    From Third Point's second-quarter letter:

    Long Equity: Delphi (DFG) Update  


  • Daniel Loeb Comments on Yahoo

    From Third Point's second-quarter letter:

    Third Point's investment in Yahoo! (NASDAQ:YHOO) appreciated 4% during the second quarter. Due to Yahoo!'s concentrated size in our funds, this modest appreciation still made it the biggest winner for the period.  


  • Daniel Loeb Comments on Yahoo, Delphi, Europe in Second Quarter Letter

    Review and Outlook
    The second quarter was marked by choppy markets caused by fears about Europe, a soft patch in the U.S., more signs of a Chinese slowdown, and U.S. consumers and business owners alike frustrated by the Obama Administration, which is openly hostile to most businesses and unable to articulate or implement policies to spark growth and reduce unemployment. Since "Euro‐phobia" has roiled the markets for over twelve months, we attributed the second quarter's sell‐off mostly to the renewed worries over US weakness and pervasive concerns about a Chinese hard landing, which punished any assets linked to global growth.  


  • Daniel Loeb Continues to Buy Yahoo Shares

    It is no surprise that Daniel Loeb likes Yahoo (NASDAQ:YHOO), but another purchase of a parcel of shares affirmed it. On July 23 – a week after the company announced the appointment of new President and COE Marissa Miller – he added 4,212,400 Yahoo shares at about $15.76 per share.

    Loeb began amassing his Yahoo stock in 2011, the year the company’s revenue dropped to $5 billion from $6.3 billion the previous year, its lowest level since 2004. It immediately became clear through a vociferous and public letter-writing campaign Loeb launched that he wanted to force change at the company. One of his victories was ousting the company’s then-CEO, Scott Thompson, after exposing untruths on Thompson’s resume in May. Shortly thereafter, he won a seat on the board of directors that hired Mayer.  


  • Giving Credit Where Credit Is Due…Thank You Daniel Loeb

    There are a few things that I feel many people get wrong. One of them that I discuss here is the idea that simply taxing the rich is a solution to every money problem. Another one that I wanted to discuss briefly is the idea that hedge funds, activist investors and other large funds are the root of all evil and bad for the markets in general. The actual example occurred last week when Yahoo named its new CEO, Marissa Mayer, an incredible hire. The fact is that like so many others, I have been extremely critical of Yahoo over the years. Its leadership, coming from the very top was terrible, leading a company that once was a jewel into the ground slowly but surely. Worst of all was the board. You can blame Carol Bartz all day long but when CEO after CEO that not only performs poorly but reflects poorly on the company, led to massive talent losses, etc…

    Something Had To Be Done

    In a situation like this, everyone was losing. Shareholders, employees, users, etc. But what could be done? It’s difficult and sometimes even possible for small investors to get together and fire a board…  


  • SAC’s Cohen Follows Loeb and Einhorn in Starting Reinsurer for Capital

    Steven A. Cohen, the billionaire founder of SAC Capital Advisors LP, started a reinsurance company that can invest in his hedge fund, following Daniel Loeb and David Einhorn in entering the business to secure more permanent capital.

    SAC Re Holdings Ltd. is being run by Simon Burton and will focus on high-margin catastrophe coverage and casualty protection, the Bermuda-based company said in a statement today. The company’s investments will be managed by SAC Capital, which oversees about $14 billion out of Stamford, Conn.  


  • Dan Loeb's Third Point Discloses Stake in Chesapeake Energy

    Dan Loeb of Third Point hedge fund has reported Chesapeake (NYSE:CHK) was his fourth-largest holding, but does not say what type of investment they have in the company:

      


  • CEO and President of Hollyfrontier Michael Jennings sold 110,000 shares

    HollyFrontier Corporation is engaged in refining petroleum. Hollyfrontier has a market cap of $6.74 billion; its shares were traded at around $31.8 with a P/E ratio of 5 and P/S ratio of 0.4. The dividend yield of Hollyfrontier stocks is 1.8%. Hollyfrontier had an annual average earnings growth of 22.5% over the past 10 years.

    On June 20, CEO and President of Hollyfrontier (NYSE:HFC) Michael Jennings sold 110,000 shares at an average price of $34.12. The total transaction amount is $3,753,200.  


  • How Hedge Fund Manager Dan Loeb Thinks about macro and Express Their Bets

    In a previous article we asked the question on Should Value Investors Pay Attention to the Macro Picture? We think that value investors should spend most of them time studying companies. Our readers pointed out that Warren Buffett made a lot of bets based on his view on macro.

    Hedge fund activist investor Dan Loeb makes a large amount of bets based on macro. His view is worth sharing here as he has built great track record. His Offshore Fund gained 17.5% a year since inception in 1996. During the same period S&P500 gained only 6%.  


  • Why Hedge Fund Third Point's Dan Loeb Likes Apple

    Hedge Fund Third Point bought 362,000 shares of Apple in the first quarter of 2012. This is why Dan Loeb likes Apple (NASDAQ:AAPL), according to his latest investment letter.

    Long Equity: Apple (NASDAQ:AAPL) Following Apple’s December quarter earnings, we re‐established a position in the stock at $445 per share, a level 10% up from the pre‐earnings price. While the market reacted positively to the strong results, we believed it was still not discounting adequately the strong likelihood that Apple would return capital in 2012. The prospect of capital return stood to broaden the investor base enabling the market capitalization to re‐base around an attractive dividend profile, particularly relative to the Company’s growth rate. Beyond the capital return catalyst, we were focused on Apple’s entry into the 4G device space in 2012, led by the latest iPad and the pending iPhone 5.  


  • Daniel Loeb Buys Big Stakes in Delphi, Apple, Google

    Daniel Loeb, founder of $8.9 billion hedge fund Third Point LLC, bought 26 new stocks for his 43-stock portfolio in the first quarter of 2012, with some major changes — seven of his top-ten holdings are new buys. For his top new buy, he devoted 10.3% of his portfolio to Delphi Auto Plc (NYSE:DLPH), followed by positions in Apple Inc. (APPL), UTD Techs Corp. (NYSE:UTX), Google Inc. (NASDAQ:GOOG), and Medco Health Solutions (MHS).

    Loeb also added 25.89% to his largest position, Yahoo (YHOO). More than 44% of his quarter-end portfolio was invested in the technology sector. The positioning earned him a 12.4% return in the first quarter, roughly in line with the markets. In the last 10 years, Loeb returned 261.7% cumulatively, compared to 34.9% for the S&P 500.  


  • Tepper and Loeb Bought Google - My View

    Google Business Analysis — I break down Google (NASDAQ:GOOG) into the following five drivers:

    1) Google Search – own the business that redefined the Internet  


  • Dan Loeb Sees $122 Million Profit on Yahoo! as He Forces CEO Exit

    Daniel Loeb’s New York-based Third Point LLC, has made almost $122 million so far on its stake in Yahoo! Inc. (NASDAQ:YHOO) after successfully forcing Chief Executive Officer Scott Thompson to step down.

    Loeb, 50, whose hedge fund owns 5.8 percent of the Web portal, has been pushing to shake up its board since September 2011, when he told the company that directors had erred in spurning a takeover bid from Microsoft Corp. Yahoo rose the most in three weeks yesterday following Thompson’s decision to leave, after Loeb flagged discrepancies in the CEO’s resume.  


  • Victory for Daniel Loeb: Yahoo CEO Thompson Plans to Quit over Resume Scandal

    Yahoo could leave the company as soon as tomorrow, replaced in the interim by Ross Levinsohn, the company’s global head of media, DealBook reports. Yahoo will also make a deal that will end activist hedge fund manager Dan Leob’s proxy fight. Under these plans, Loeb and two of his director nominees, media executive Michael J. Wolf and turnaround specialist Harry Wilson, will be on the board.

    The five current Yahoo board members, all set to depart this summer, will leave now, making way for the new members, reports AllThingsD, which broke the news. Newly minted director Fred Amoroso will become board chairman.  


  • Loeb Says He'll Fight Yahoo as Long as It Takes

    In rare public comments about his ongoing proxy fight with Yahoo, Third Point founder Dan Loeb called the company “bloated” and “not focused,” but added that the tech giant is a “great business” capable of being turned around. In an interview after his presentation at the Skybridge Alternatives (SALT) investor conference in Las Vegas, Loeb threw an unexpected bone to the [b]Yahoo[/b] board, saying there are good people there with whom he could work.

    Loeb said the issue at Yahoo is fairly straightforward: There’s a lack of leadership vision and values. Speaking of recent revelations that Yahoo CEO Scott Thompson misrepresented his educational credentials, Loeb said the issue comes down to accountability — and there’s a crisis of leadership at the company.  


  • Third Point's First Quarter 2012 Investor Letter with Comments on YHOO, AAPL, ESRX

    Review and Outlook: As we discussed at our investor presentation in January, we believe the threat of a severe global slowdown receded as a result of the European stability mechanisms announced late in 2011, and so the global economy – and in particular, the US economy – is in a growth trajectory notwithstanding certain persistent "tail risks". The First Quarter was a benign environment for our value‐oriented stock‐picking style, and our analysts found interesting opportunities everywhere, resulting in positive performance across most asset classes, sectors, and geographies.

    Our mortgage portfolio was up ~6.5%, recovering nicely from a dip in the Fourth Quarter of 2011. Corporate credit gained 12% for the year through March 31st, on the strength of investments made during the credit market sell-off in October 2011 which were primarily near‐term, cash‐returning situations with small downside risk and a quick payday. Long equity positions were up 12.4%, roughly the same as the market, despite a loss in Yahoo! (NASDAQ:YHOO), our largest equity position. We generated our greatest profits in Financials, Consumer, and Healthcare, losing money primarily in our Special Situations short book. From a regional perspective, Europe had a 20% return on average exposure while the US was up 12%. Gold was up ~5% on our average exposure of 5.5% of AUM.  


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