Daniel Loeb

Daniel Loeb

Last Update: 2014-08-21

Number of Stocks: 41
Number of New Stocks: 11

Total Value: $8,133 Mil
Q/Q Turnover: 38%

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

Daniel Loeb Watch

  • 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

      


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

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

    The full letter is below:  


  • Sony's Management Should Pay Attention to Dan Loeb

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

    A Value-Enhancing Proposal  


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

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

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


  • Daniel Loeb Buys Sotheby’s Stake in Winning Streak

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

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


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

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

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


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