Daniel Loeb

Daniel Loeb

Last Update: 02-13-2015

Number of Stocks: 40
Number of New Stocks: 12

Total Value: $11,086 Mil
Q/Q Turnover: 40%

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

Daniel Loeb Watch

  • Invest In These Hedge Funds At A Discount

    As of the close on 10/13/2014, Greenlight Reinsurance (GLRE), Third Point Reinsurance (TPRE), and Pershing Square Holdings (AEX:PSH) were selling at discounted prices compared to their book values. These three companies are led by 3 of the top investing gurus we follow, David Einhorn, Daniel Loeb, and Bill Ackman.


    Einhorn and Loeb are following the Warren Buffett model of using the float from an insurance company to essentially make investments on what is similar to an investment free loan. When insurance premiums are collected, the capital has to stay with the company in order to pay out the claims. The premiums collected, but not paid out yet, are referred to as float. As long as the underwriting business is profitable, the float mimics an interest free loan. A common metric used is the combined ratio. A ratio of 100 is break-even, and the lower the number, the more profitable the business. The underwriting profit is simply measured as premiums received minus expenses. In some years, claims might be higher due to certain events, so enough liquidity must be retained to pay them out. Most insurance companies invest the float in fixed income to generate extra cash flow and increase profits. The float from Greenlight Re and Third Point Re is managed by the hedge funds Greenlight Capital and Third Point. Einhorn is the manager of Greenlight Capital and Loeb is the manager of Third Point.

      


  • Caxton Associates Bought this Stock

    In this article, let´s consider Anheuser-Busch InBev SA/NV (BUD), a $180.02 billion market cap. which has a trailing P/E ratio that indicates that the stock is relatively undervalued (PE 21.9x vs Industry Median 24.8x).


    So in this article, let's take a look at a model which is applicable to stable, mature, dividend-paying firms and try to find the intrinsic value of the stock. Although the model has a number of characteristics that make it useful and appropriate for many applications, it is by no means the be-all and end-all for valuation. The purpose is to force investors to evaluate different assumptions about growth and future prospects.

      


  • Dow Chemical´s Promising Future

    In this article, let's take a look at The Dow Chemical Company (DOW), a $65.41 billion market cap company, which is the largest U.S. chemical company and provides chemical, plastic andagricultural products as well as services.


    Portfolio Mix

      


  • Daniel Loeb's New Stocks

    Dan Loeb is CEO of Third Point LLC, founded in 1995, where he oversees all investment activity. Third Point describes its underlying strategy as “event-driven, value-oriented,” and says it “seeks to identify situations where we anticipate a catalyst will unlock value,” on its website.

      


  • Top Hedge Fund Managers Are Buying Ally Financial

    Now that the investment management firms have filed their Form 13Fs with the SEC, we can gain better insight into which securities the investing gurus are buying and selling. The S&P 500 Grid at GuruFocus can be used to find the top buys, sells and net buys based on a number of different categories.


    Using the grid, I found that many of the investing gurus have been initiating positions in Ally Financial (ALLY). There were 10 buyers of the stock in the second quarter and none of the gurus we follow have sold any shares. The buyers include hedge funds titans such as George Soros (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), John Paulson (Trades, Portfolio), Howard Marks (Trades, Portfolio), and Jeremy Grantham (Trades, Portfolio). There is no other stock that has had as many buyers without at least one other manager selling. Daniel Loeb (Trades, Portfolio) of Third Point LLC has the largest position of 45.595 million shares, representing 9.45 percent of the shares outstanding and 13.4 percent of his portfolio. He actually obtained his position in private transactions prior to the IPO that occurred on April 10 of this year.

      


  • Which Is The Better Buy?: Einhorn's Greenlight Re or Loeb's Third Point Re

    Within the past week both Greenlight Re (GLRE) and Third Point Re (TPRE) released their second quarter earnings for 2014. The reinsurance companies both have investing gurus we follow running the investment portfolios. David Einhorn handles the portfolio for Greenlight Re, and Daniel Loeb is in charge of Third Point Re’s portfolio. Einhorn and Loeb started their long/short hedge funds in the mid-1990s and have had annual gains of about 20 percent each since inception.


    The two reinsurance companies are ways to gain access to the hedge funds while potentially receiving even higher returns if the insurance underwriting businesses are profitable. The metric that insurance companies use to measure underwriting profits is the combined ratio. A combined ratio of 100 indicates break even and the lower the number, the more profitable the underwriting business is. Greenlight Re and Thirdpoint Re are both relatively new companies, and it takes time to establish the insurance business so it can provide consistent underwriting profits. Greenlight Re has already reached the point of consistent profits, but Third Point Re is still developing its business and is not yet there.

      


  • Global Market Valuations And Expected Returns - August 6, 2014

    In January 2014, the U.S. stock market benchmark S&P 500 lost 3.36% after the excellent 2013. The enthusiasm went back as the market gained 4.31% over February. In March, it went up only 0.69%. In April, it was about even for the whole month. In May, the market gained 2.10% and in June, the market benchmark S&P 500 went up 1.91%. However, in July, the market went down by 1.51%.


    What is the situation in the other parts of the world? In July, the key indexes in Europe had negative return figures. Germany’s DAX index declined 4.33%. France’s CAC-40 index lost 4.00%. The FTSE 100 index moderately went down by 0.20%. Stock markets performances in Asia were very strong. Japan’s NIKKEI 225 gained 3.03%. Hong Kong’s Hang Seng Index surged 6.75% and China’s SSE Composite index surged 7.48%.

      


  • Third Point Comments on Royal DSM NV

    Over the past three years, Royal DSM NV (“DSM”) has transformed itself into a leading global life sciences company focused on health and nutrition with ~$12 billion of sales and ~$1.7 billion of EBITDA. DSM’s portfolio of businesses also includes legacy activities in materials sciences. While the Materials segments account for ~55% of sales, their profit contribution to the DSM group (~30% of EBITDA) has been greatly surpassed by that of the Nutrition segment (~70% of EBITDA). Earlier this year, DSM shares sold-off following: i) a profit warning in the Nutrition segment, and ii) growing skepticism about DSM’s ability to execute on its plan to divest its commodity caprolactam business. The weakness in DSM’s share price served as an opportunity to build our position. We believe that the profit warning in Nutrition was driven by cyclical factors and abnormally adverse weather rather than any structural changes in the underlying fundamentals. We are also optimistic that management can successfully separate its commodity caprolactam exposure through either a sale or joint venture. Finally, near-term trends are positive in both of DSM’s businesses, with Nutrition starting to show signs of reverting to a more normalized growth rate and Performance Materials starting to inflect from depressed levels given its exposure to rebounding European automotive and construction markets.


    DSM group currently trades at 7.5x forward EV/EBITDA. Based on our analysis, we believe that both the Nutrition and Performance Materials segments should command higher multiples than DSM’s current group multiple. The low group valuation is driven by the continued presence of the Performance Materials and Polymer Intermediates segments. These businesses have de minimis end-market overlap or synergies with Nutrition. Furthermore, the non-nutrition businesses are structurally more volatile and have lower returns, making the combined entity cumbersome for investors to analyze and appropriately value.

      


  • Daniel Loeb’s Third Point Second Quarter 2014 Investor Letter

    Review and Outlook


    Markets moved higher in the first half of 2014, despite an early sell-off in heavily-owned hedge fund names and popular technology stocks. While investors perceived the market as volatile, the +7% return for the first half largely exceeded expectations.

      


  • Einhorn Is Transforming BioFuel Energy Into A Profitable Real Estate Company

    Two of the gurus that I follow at GuruFocus are David Einhorn and Daniel Loeb. They are both considered to be activist investors and their hedge funds have experienced extraordinary results. Loeb started Third Point Capital in 1995 and Einhorn started Greenlight Capital in 1996. Third Point Capital has returned 20.4 percent annulized since its inception in 1995, and Greenlight Capital has returned 19.5 percent annualized since May of 1996.


    Together they hold 52.8 percent of BioFuel Energy Corp (BIOF) with Einhorn holding 35.4 percent and Loeb holding 17.4 percent of the shares outstanding (including B Shares) according to the Form S-1 filed with the SEC on 7/16/2014. BioFuel is going through some major changes and will be reinventing itself as a real estate company. With the exceptional track record of the two hedge fund managers, Biofuel Energy is going to be a stock to keep an eye on.

      


  • Top Insider Sells Highlight: Cytec Industries Inc.

    Vice President and CFO of Cytec Industries Inc. (CYT) David Drillock sold 49,038 shares on July 21 at an average price of $107.06. The total transaction amount was $5,250,008.


    Cytec Industries was incorporated as an independent public company in December 1993. Cytec Industries Inc has a market cap of $3.85 billion; its shares were traded at around $107.42 with a P/E ratio of 20.70 and P/S ratio of 2.10. The dividend yield of Cytec Industries stocks is 0.50%. Cytec Industries had an annual average earnings growth of 46.60% over the past 5 years.

      


  • Top Insider Sells Highlight: Google Inc.

    CEO and 10% Owner of Google Inc (GOOG) Lawrence Page sold 33,332 shares on July 14 at an average price of $586.48. The total transaction amount is $19,548,551.


    Google was incorporated in California in Sept. 1998 and reincorporated in Delaware in Aug. 2003. Google Inc has a market cap of $394.43 billion; its shares were traded at around $584.78 with a P/E ratio of 30.80 and P/S ratio of 6.30. Google Inc had an annual average earnings growth of 33.30% over the past 10 years. GuruFocus rated Google Inc the business predictability rank of 3-star.

      


  • Gain Access to Daniel Loeb’s Hedge Fund Through Third Point Re

    Through my research of Greenlight Re (GLRE), I discovered Third Point Reinsurance (TPRE). Third Point Re was listed as the most similar, publicly traded competitor to Greenlight Re. The company is a way to gain access to Daniel Loeb’s hedge fund without needing the typical $1 million to invest in such a fund. Loeb has been one of the best performing gurus that we follow at GuruFocus. Third Point’s funds have blown away the S&P 500 over the years. The Master Fund has provided an annual return of 20.4 percent since inception in 1995 compared to the S&P 500’s annual return of 9.7 percent.


      


  • What Guru Investors Did with Bill Ackman's Herbalife in Q1

    When an investor as prominent as Bill Ackman (Trades, Portfolio) makes a short case of a public company, many other investors will either agree with him, or view it as an opportunity to take a long position on the ensuing dip. But in the case of weight-loss and nutrition company Herbalife (HLF), its stock has had a tortuous ride since Ackman announced his short in 2012, as no ultimate determination about his thesis has been made. That didn’t stop fund managers from taking sides again in the first quarter.

    Ackman’s initial announcement of his $1 billion short against Herbalife in April 2012 immediately sunk the company’s stock by more than a third. In December 2012, it plunged again by about 38%. His victory was short-lived, however, when in the next year Herbalife’s soared to all-time highs.  


  • Top 5 Hedge Fund Net Buys

    The recent top net buys of the hedge fund gurus were American Airlines (AAL), Actavis (ACT), Allegion (ALLE), Gilead Sciences (GILD), and Verizon (VZ). I found the net buys by using the S&P 500 Grid at GuruFocus. I adjusted the setting to include only hedge fund gurus and examined the results for both S&P 500 companies and non-S&P 500 companies.


    American Airlines Group (AAL) 14 (16 buys, 2 sells)

      


  • Can Loeb Reinvigorate Sotheby’s?

    Now that Third Point LLC’s founder and CEO, Daniel Loeb, and the board of Sotheby’s (BID) have come to an agreement, is now the time to buy the stock? There is currently an opportunity to buy it at a lower price than Loeb. He currently has 6.35 million shares valued at valued a little under $260 million. His average purchase price is $43.91 with his purchases starting in February of 2013. The stock is now trading for about 7 percent less at $40.76.


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  • Daniel Loeb Comments on SoftBank Corp

    SoftBank Corp. (TSE:9984)("SoftBank") Update Following its strong rally at year‐end, SoftBank shares pulled back 15% during Q1 2014. We believe this pullback was due to technical trading and that SoftBank's fundamentals are stronger than when we initiated the position during the fourth quarter of 2013. SoftBank has continued to demonstrate significant value growth in key drivers across each of its underlying businesses. The Japanese wireless segment successfully navigated the temporary impact of NTT's iPhone offering and seasonal promotional activity in March 2014, while consensus valuations for Alibaba Group have grown from $120 billion to $171 billion year‐to‐date. These trends play into the four‐pronged equity value expansion story for SoftBank shares:


    1) SoftBank Mobile value expansion of ¥230 per share annually (EBITDA growth, constant multiple)

      


  • Daniel Loeb Comments on IHI Corporation

    Equity Position: IHI Corporation ("IHI")(TSE:7013)


    IHI is a mid‐cap Japanese conglomerate exposed to three big themes: commercial aerospace, automotive fuel efficiency, and Abenomics‐led real estate reflation in Tokyo.

      


  • Third Point (Dan Loeb) Q1 2014 Letter to Investors



  • Global Market Valuations and Expected Returns – April 4, 2014

    In January 2014, the U.S. stock market benchmark S&P 500 lost 3.36% after an excellent 2013. The enthusiasm went back as the market gained 4.31% over February. In March, it went up only 0.69%. The market benchmark S&P 500 closed at 1890.90 on April 2, 2014, which is the new record high. What is the situation in the other parts of the world? In March, the key indexes in Europe returned negative. Germany’s DAX index declined 1.40%. France’s CAC-40 index lost 0.38%. The FTSE 100 index was down 3.10%. Stock market performances in Asia were weak too. Japan’s NIKKEI 225 moderately decreased 0.09%. Hong Kong’s Hang Seng Index was down 3.00% and China’s SSE Composite index was down 1.12% due to the weaker-than-expected Chinese economic data.


    Seth Klarman has returned $4 billion to clients at 2013 year-end due to lack of ideas and has 40% of the portfolio in cash. In his 2013 letter to investors, he mentioned the Continuing Problems in Europe, “Europe isn’t fixed either, but you wouldn’t be able to tell that from investor sentiment. One sell-side analyst recently declared that ‘the recovery is here,’ a sharp reversal from his view in July 2012 that Greece had a 90% chance of leaving the Euro by the end of 2013. Greek government bond prices have nearly quintupled in price from the mid-2012 lows. Yet, despite six years of painful structural adjustments, Greece’s government debt-to-GDP ratio currently stands at 157%, up from 105% in 2008. Germany’s own government debt-to-GDP ratio stands at 81%, up from 65% in 2008. That doesn’t look fixed to us. The EU credit rating was recently reduced by S&P. European unemployment remains stubbornly above 12%. Not fixed.

      


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User Comments

Guardinvest
ReplyGuardinvest - 4 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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