Daniel Loeb

Daniel Loeb

Last Update: 08-14-2015

Number of Stocks: 49
Number of New Stocks: 14

Total Value: $10,618 Mil
Q/Q Turnover: 17%

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

Daniel Loeb Watch

  • 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.  


  • Daniel Loeb Publicizes Yahoo CEO's Education Record Discrepancy

    NEW YORK, May 3, 2012 /PRNewswire via COMTEX/ -- Third Point LLC, owners of 5.8% of Yahoo! shares, sent the following letter today to the Yahoo! (NASDAQ:YHOO) Board of Directors:

    May 3, 2012  


  • Loeb's Hedge Fund Launches Site in Yahoo! War

    Hedge fund manager Daniel Loeb has intensified his firm Third Point's proxy battle with Yahoo Inc. (NASDAQ:YHOO), launching a website calling for a management shakeup at the online media company. ValueYahoo.com, which went live on Monday, also boasts a blog, links to articles covering the proxy fight and biographies of four proposed board nominees, including Loeb himself. Loeb is using the website to line up support for Third Point's positions ahead of Yahoo's annual meeting expected to take place in June.

    The site, along with an associated Facebook page, is a new tactic taken by the hedge fund manager famous for sending vituperative letters to corporate managers over the years.  


  • Dan Loeb’s Latest to the Yahoo Board – Suggests Their Ideas Are from an “Alice in Wonderland” World

    Remember that last nasty e-mail that you wrote, but deleted because it crossed the line?

    Check out Dan Loeb’s latest to the Yahoo! (NASDAQ:YHOO) board of directors concerning their refusal to give him a spot on the board. Loeb’s line is a little different from the rest of us.  


  • Daniel Loeb Discusses Stock Holdings UCG, ANF, SWKS, YHOO

    Long Position: Unicredit One of the questions we have been asked most frequently by investors over the past 18 months is whether European bank‐related investments were as compelling to us as they seemed to be to other managers, some of which even raised funds to capitalize on the supposedly massive opportunities originating due to stressed conditions in Europe. We bided our time and having dry powder proved fruitful in January when we were able to capitalize on an extraordinary special situation.

    Unicredit (UCG) is one of Italy's largest commercial banks with additional retail operations throughout Central and Eastern Europe. The EBA bank stress tests conducted in Q4 revealed UCG's need to raise €7.5 billion of capital by June 30, 2012 to reach the minimum 9% threshold required under Basel III. In November 2011, UCG announced a €7.5 billion rights offering with pricing to be determined in early 2012. Demand from UCG's shareholder base to underwrite the deal was weak however, given that nearly 25% of its shareholders (mainly Italian foundations and the Libyan Central Bank) lacked additional capital. This prompted the consortium of banks underwriting the deal to price the new shares at a ~60% discount, nearly 2x that of similar transactions and more than doubling the shares outstanding.  


  • Fourth Quarter Shareholder Letter of Dan Loeb, Third Point Capital

    Dan Loeb discusses his positions and Long Equity: Volkswagen, long Credit: Ally Financial Long Equity: Yahoo! – The Case for Alibaba:  


  • Dan Loeb Accuses Yahoo’s Board of Stonewalling Him – Sends Notice of Proxy Contest

    Like usual, in the letter Loeb takes the more direct approach rather than beating around the bush.

    Mr. Scott Thompson, CEO  


  • Daniel Loeb Increases Stake in Yahoo

    Daniel Loeb, noted investor and founder of $8 billion hedge fund Third Point LLC, bought a sizable stake in Yahoo! Inc. (NASDAQ:YHOO) in the third quarter of 2011. Since then, he has had a stormy public relationship with the company. Though he has criticized aspects of the company in a vitriolic correspondence, he increased his stake 0.36% on March 12, according to GuruFocus Real Time Picks. In his fourth quarter letter, posted here by Jacob Wolinsky, Loeb gave a lengthy investing thesis on the company he is piling so much money into. Here is a summary:

    · Discount to intrinsic value first thing they noticed  


  • Daniel Loeb’s Biggest Purchases – Marvell Tech, Yahoo and DISH Network

    Daniel Loeb founded Third Point Offshore Investors Ltd., an investment adviser, in 1995. Third point currently has $8 billion under management and is event driven and value oriented. Often, Loeb engages in activist investing, as is particularly the case with his biggest holding, Yahoo! (NASDAQ:YHOO).

    His biggest purchases in the fourth quarter were Marvell Technology Group Ltd. (NASDAQ:MRVL), Yahoo! Inc. (NASDAQ:YHOO) and Dish Network Corp. (NASDAQ:DISH).  


  • Dan Loeb’s (Third Point) Latest on His Yahoo Fight Including His Four Board Nominees

    Below he explains why he believes his four nominees should go on the board of directors:

    Effective January 17, 2012, Founder Jerry Yang resigned from the Board of Directors (the “Board”) of the Issuer and from all other positions with the Issuer. On Feb. 7, 2012, the Issuer announced that Roy J. Bostock, Chairman of the Board, and Vyomesh Joshi, Arthur H. Kern and Gary L. Wilson (the “Retiring Directors”) each had volunteered not to stand for re-election to the Board at the Issuer’s 2012 Annual Meeting of Shareholders (the “2012 Annual Meeting”). The board also announced that it had appointed two new directors, Fred Amoroso and Maynard G. Webb Jr. (the “Newly-Appointed Directors”).  


  • Guru Stocks Raising Dividends: CVS, WSFL, CXS, T, ANDE

    This is the group of companies who raised their dividend during the week: CVS Caremark, Woodstock Holdings Inc., Crexus Investment Corp., AT&T, The Andersons Inc.

    CVS Caremark (NYSE:CVS)  


  • Daniel Loeb Likes These Low-P/E, Undervalued Companies: HFC, CVR, CE, CXS, XRM

    American hedge fund manager and founder of Third Point LLC Daniel Loeb is a well-known investor. He is not only recognized for Third Point but also for the public letters he writes to financial executives expressing his disapproval of their performance and conduct.

    The firm’s hedge funds include Third Point Partners, Third Point Opportunities Master Fund, Third Point Ultra Master Fund and Third Point Resources. He also holds a capital venture, Third Point Ventures.  


  • A Collection of Dan Loeb (Third Point) Love Letters to the Board of Yahoo

    The latest released today. Here is the entire letter series to (NASDAQ:YHOO):

    December 13, 2011  


  • What Hedge Fund Gurus Are Doing with Gold (GLD) and Gold Stocks

    Gold demand in the third quarter increased 6% year over year to an all-time high, driven by investment demand, which increased 33%, to $468.1 tonnes, or $25.6 billion. The Gold Fund ETF (GLD) continued to climb 21% year to date. Often considered as a portfolio hedge against uncertainty, it is interesting to see what Gurus have done with the metal in an economically volatile quarter.

    John Paulson  


  • Daniel Loeb Top Dividend Picks

    American hedge fund manager and founder of Third Point LLC Daniel Loeb is a well-known investor. He is not only recognized for Third Point but also for the public letters he writes to financial executives expressing his disapproval of their performance and conduct.

    The firm’s hedge funds include Third Point Partners, Third Point Opportunities Master Fund, Third Point Ultra Master Fund and Third Point Resources. He also holds a capital venture, Third Point Ventures.  


  • Hedge Fund Third Point Buys Yahoo! Inc., Williams Cos., HollyFrontier, Sells Lyondellbasell Industries, CIT Group, NXP Semiconductors

    Hedge Fund Third Point LLC is run by activist investor Daniel Loeb. The firm just reported its Q1 portfolio. As of 09/30/2011, Third Point, LLC owns 35 stocks with a total value of $2.1 billion. These are the details of the buys and sells.

    Third Point’s Master Fund gained 41% in 2010, and 38.5% in 2009. For the past 5 years, it has a cumulative gain of 64%. For the past 10 years, it gained 315%. These numbers left the market average into dust.  


  • Dan Loeb Wants Jerry Yang Kicked Off the Yahoo Board of Directors

    Dear Members of the Board of Directors:  


  • Daniel Loeb Buys More Yahoo! and Demands Changes at Company

    Daniel Loeb Added 1.54% to his Yahoo! Inc. (NASDAQ:YHOO) holding at the average price of $15.48 on Nov. 4, 2011, as reported in Third Pointe Capital’s latest 13D. He now owns 66,000,700 shares. Yahoo just became part of Loeb’s portfolio when he bought 65,000,000 shares on Sept. 8, 2011 for about $14.44 per share.

    Loeb’s new investment in a company many believed was fading into Internet history has proved profitable to date. Over the last three months Yahoo’s stock price has advanced 44% and trades for around $16 a share on Tuesday. But Loeb hopes to make his investment even more profitable.  


  • Dan Loeb Keeping His Powder Dry

    Hedge fund manager Daniel Loeb recently released his third-quarter investor letter where he shared some macro insights.

    First of all, it appears that Loeb is concerned about Chinese economic growth slowing. Due to his concerns, he shorted copper last quarter.  


  • Daniel Loeb Third Quarter 2011 Investor Letter: YHOO, GLD, TCH, SUN, CIT, MOS

    November 1, 2011
    [b]
    Third Quarter 2011 Investor Letter  


  • Delivering Alpha – Video of Discussion With Bass, Loeb, Falcone, Cooperman

    61-minute video with some of the better known hedge fund managers. CNBC's Tyler Mathisen talks to six power players to get their best ideas for investing right now, featuring Kyle Bass, Hayman Advisors LP founder and principal; Leon G. Cooperman, Omega Advisors chairman and CEO; Philip Falcone, Harbinger Capital Investments founder; J. Tomilson Hill, Blackstone Marketable Alternative Asset Management CEO; Daniel S. Loeb, Third Point LLC founder and CEO; Anne B. Popkin, Symphony Asset Management president.

      


  • Dan Loeb’s Letter to the Board of Yahoo

    LETTER TO THE BOARD OF DIRECTORS OF THE ISSUER

    September 8, 2011  


  • Dan Loeb Still Favors Gold

    Daniel Loeb is the hedge fund manager at the wildly successful Third Point LLC. Loeb recently reported his holdings as of 08/31/2011. Interestingly, despite the market turmoil this summer, Third Point still favors gold over all other investments.

    In the most recent report Loeb reveals that his largest position is still gold. It is unclear whether Loeb owns the gold via futures, stored bullion or the gold ETF GLD (GLD).  


  • Monday Value Overview

    Welcome back from the hurricane this past weekend and to the hurricane that was today’s stock market. Today’s edition discusses Berkshire Hathaway (NYSE:BRK.B), XL Group (NYSE:XL), J.P. Morgan (NYSE:JPM), BNY Mellon (NYSE:BK), Mosaic (NYSE:MOS) and Barnes & Noble (NYSE:BKS). Insurance stocks did particularly well today as Hurricane Irene didn’t do as much damage as expected and a solution was proposed for the never-ending European crisis. I think most of the gains were just a relief from oversold conditions, though. Berkshire Hathaway had a particularly nice day after having taken a beating in the last month. One of my other favorites, XL Group, shot up nearly 7% today. John Paulson owns about 9% of XL and James Barrow owns about 7%. XL announced great earnings a month ago and the stock trades at a significantly lower price than before the earnings announcement. Factor in that the stock yields more than the 10-year government bond, and you can’t go wrong.

    Banks also did very well today. Analyst Dick Bove thinks they’ve got much more room to run though. He lists seven banks trading below tangible book value. Think of these kind of like net-nets, only with the potential for improper reserves. The way to guard against that is to choose the banks with good management. J.P. Morgan and BNY Mellon are two on the list with great management. Valuations across the space are much lower than they should be. For those two banks to be trading this cheap, you should know that the recent bank sell-off was more emotional than anything else.  


  • Daniel Loeb Buys Mosaic, FCX, ABX, and Adds to Sara Lee

    Daniel Loeb is the founder of Third Point LLC, a New York based hedge fund with over $7.1 billion in assets under management. He utilizes a value investing strategy that is very similar to that of Joel Greenblatt, firmly believing in investing in undervalued companies. Loeb looks at a company's underlying fundamentals and factors in the company's legal, regulatory and accounting aspects when selecting stocks. He is perhaps best known for his public letters to company executives in which he mordantly addresses the company's performance issues and openly disapproves of their conduct. Over the past ten years, Loeb's Master Fund has earned a cumulative return of 315.6%, completely outpacing the S&P 500's return of 16.4% in the same period. In his second quarter portfolio update, Loeb bought Mosaic (MOS), Freeport-McMoRan (FCX), Barrick Gold Corp. (ABX) and added to his holdings in Sara Lee (SLE).

    Mosaic Company (NYSE:MOS)  


  • Daniel Loeb of Third Point Second Quarter 2011 Investor Letter

    California sunlight, sweet Calcutta rain
    Honolulu starbright the song remains the same. . .
    Sing out Hare Hare, dance the Hoochie Koo  


  • Why Third Point Capital's Daniel Loeb Is Beating John Paulson and David Einhorn

    On Wednesday, Reuters reported that hedge funds overall have lost an average of 2% over the first half of the year, while the S&P gained around 6%. Below the average are unexpected names like John Paulson (flagship fund down 15%), David Einhorn (Greenlight Capital down 5%), and Bill Ackman (Pershing Square Capital down 2.27%).

    Yet at least one manager has outshone them – Daniel Loeb. He is the founder of the $7.1 billion hedge fund Third Point LLC, which has had an annualized return of 19% since inception in 1996. Year to date, his fund has gained 6.3%, after losing 2.9% in June. His portfolio has climbed because he took a slightly different tack this year than other top investors. For example, only 7.6% of his fund is invested in battered financials, down from about 14% in the fourth quarter. He completely sold out his shares of Citigroup (NYSE:C) in the first quarter of 2011.  


  • Daniel Loeb’s Hedge Fund Third Point Reports Q1 Portfolio; Buys EP, TSO, WHR, EBAY, ACW

    Hedge Fund Third Point LLC is run by activist investor Daniel Loeb. The firm just reported its Q1 portfolio. As of 03/31/2011, Third Point, LLC owns 50 stocks with a total value of $2.3 billion. These are the details of the buys and sells.

    Third Point’s Master Fund gained 41% in 2010, and 38.5% in 2009. For the past 5 years, it has a cumulative gain of 64%. For the past 10 years, it gained 315%. These numbers left the market average into dust.  


  • Weekly Top Insider Buys: CMSCA, FPR, MJN, WIN, MAC

    Weekly highlight of top insider buys: Comcast Corp. (CMSCA), Freeport-McMoRan (FPR), Mead Johnson Nutrition Company (NYSE:MJN), Windstream Corp. (NASDAQ:WIN), and Macerich Company (NYSE:MAC).

    Comcast Corp. (CMCSA): EVP and CFO Michael J. Angelakis Bought 25,000 Shares

    EVP and CFO of Comcast Corp., Michael J. Angelakis, bought 25,000 shares on 5/09/2011 at an average price of $25.13.  


  • Weekly Guru Bargains Highlights: CFFN, CCJ, AIG, AKAM, BRCM

    According to GuruFocus updates, these stocks have declined the most since Gurus have bought.

    Capitol Federal Financial Inc (NASDAQ:CFFN): Down 54% Since Daniel Loeb Bought In the Quarter Ended on 2010-12-31  


  • Third Point 1Q11 Shareholder Letter

    Daniel Loeb’s Third Point published the following letter to shareholders. For the first quarter, Third Point’s Offshore Fund returned 8.6%, vs. S&P 500’s 5.9%. The fund returned 19.0% since its inception.

    The top winners for the quarter were CVR Energy (CVR), Technicolor (TCH), Williams Companies Inc. (WMB), NXP Semiconductor NV (NXPI), and a short position in the Subprime ABX Index. The top losers for the quarter were Inmarsat PLC (ISAT), Wells Fargo & Company (WFC), Accuride Corp. (ACW), Short A and CIT Group (CIT).  


  • Guru Stocks at 52-Week Low: CSCO, AZ, AIG, GM, TGT

    Last week’s top five stocks that reached their 52-week lows were CSCO, AZ, AIG, GM, and TGT. According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.

    Cisco Systems Inc. (NASDAQ:CSCO) Reached the 52-Week Low of $17.03  


  • Mario Gabelli Buys IRIS and Reduces MYE; Daniel Loeb Reduces NABI

    Two gurus filed 13Ds in the last two days reporting that they reduced their holdings in companies in which they owned a 5% or more stake. The companies they shed shares of were Iris International (IRIS), Meyers Industries Inc. (NYSE:MYE) and Nabi Biopharmaceuticals (NABI).

    Mario Gabelli  


  • Weekly Guru Bargains Highlights: DAL, CREE, BBY, FFIV, CFFN.

    Last week’s top five guru bargain stocks were DAL, CREE, BBU, FFIV, and CFFN. According to GuruFocus updates, these stocks have declined the most since Gurus have bought.

    DELTA AIR LINES INC. (NYSE:DAL): Down 25% Since Pioneer Investments Bought In the Quarter Ended on 2010-12-31  


  • Daniel Loeb Publishes Annual Letter

    Bess Levin has posted the annual letter by Daniel Loeb of The Point. Loeb’s Third Point Partners L.P. fund returned 41.7% and his other funds also beat the S&P 500 handily.

    Here is what he said on the market outlook:
    We entered 2011 positioned for a continued global recovery, sharp price increases in commodities, and the view that undervalued companies would either appreciate or be acquired. During the first month of the year, two of our holdings each announced agreements to be acquired at premiums. We remain constructive on equities in general and on the US and European economies. Our greatest concern is the growing consensus around the bullish view we have held since April 2009. Therefore, we welcome sharp corrections like the two we had last month, the first a decline based on worries about Chinese inflation and the second, a sell-off due to the Egyptian political crisis, each of which we used to increase certain positions.  


  • Daniel Loeb Returns 33.5% for the Year

    Third Point’s Daniel Loeb published his December 31, 2010 Monthly report. For the month, his Third Point Offshore Fund was up 6.6%; for the year, it was up 33.5%. S&P 500 was up 15.1% for the year. The fund returned an average of 18.6% since 1995 inception. S&P 500 returned 5.5% per year during the same period. All in all, Loeb returned 1010% for his investors during the period.

    You just can’t beat him with index.  


  • Hedge Fund Performance Numbers: What to Expect

    2010 was a very volatile year and it wasn’t a good year for many hedge funds. We have previously reported that Bill Ackman’s Pershing Square is having a phenomenal year, thanks to their General Growth Properties (GGP) investments. Dan Loeb’s Third Point will be returning about 30+% in 2010. Finally Ken Griffin’s Citadel reportedly returned around 10% in 2010. Most other reputable hedge funds performed much worse than these:

    Andreas Halvorsen’s Viking Global Equities: Prior to founding Viking Global, Andreas Halvorsen was the director of equities at Julian Robertson’s Tiger Management. This tiger cub is up less than 3% through early December.  


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User Comments

Guardinvest
ReplyGuardinvest - 9 months 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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