Daniel Loeb

Daniel Loeb

Last Update: 2014-11-14

Number of Stocks: 41
Number of New Stocks: 11

Total Value: $8,714 Mil
Q/Q Turnover: 26%

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

Daniel Loeb Watch

  • Daniel Loeb is Buying BlackBerry–Should You?

    BlackBerry (BBRY) has been a value trap that has ensnared more than its share of value hunting investors in recent years —yours truly included. Buying BlackBerry stock will also likely go down in history as the single-worst investing mistake in the otherwise illustrious career of Prem Watsa (Trades, Portfolio) — the chairman ofFairfax Financial (FRFHF) and the man commonly known as the “Warren Buffett of Canada.”

    Attempting to call the bottom in BlackBerry stock — and ultimately getting burned — appears to be something of a rite of passage.  


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

    Activist investor Daniel Loeb (Trades, Portfolio) added T-Mobile US Inc. (TMUS) at a price of $25. It makes me feel that he is betting that the company could be acquired by Sprint Corp. (S) or Dish Network Corp. (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 (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 (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 (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 (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:

      


  • 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 (ATVI) and Electronic Arts (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. (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. (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 (HLF), Sony (SNE), FedEx (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 (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 (NOK) after the Finnish company sold its money-losing handset business to Microsoft (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") (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.  


  • Third Point Third Quarter 2013 Letter to Investors



  • 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

      


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    User Comments

    Guardinvest
    ReplyGuardinvest - 1 month ago
    Following DOW as he puts added pressure on them to split and divest their commodity chemical business as well as increase stock buy backs. Creating a Shadow Board.



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