Daniel Loeb

Daniel Loeb

Last Update: 11-13-2015

Number of Stocks: 31
Number of New Stocks: 4

Total Value: $10,535 Mil
Q/Q Turnover: 37%

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

Daniel Loeb Watch

  • Why Soros, Burbank and Cohen Bought this Fairly Valued Stock

    In this article, let's take a look at Anheuser-Busch InBev SA/NV(NYSE:BUD), a $184.78 billion market cap company that is a brewing company and manages a portfolio of over 200 brands of beer.

    Good dividend yield


  • Different Hedge Fund Managers Bought and Added Molson Coors Brewing

    In this article, let's take a look at Molson Coors Brewing Company (NYSE:TAP), a $14.01 billion market cap company, which is the fifth largest brewer in the world, was formed in early 2005 via the combination of Adolph Coors Co. and Molson, Inc.

    Light Beer


  • The Broken-Leg Problem: Q&A with Abnormal Returns’ Tadas Viskanta about Deep Value

    Earlier this week I did a Q&A withAbnormal Returns’ Tadas Viskanta about Deep Value. Tadas sees more finance and investing content than anyone else, so it’s always interesting to see what he takes away from a topic:


  • Daniel Loeb Comments on Sony Corp

    In May of 2013, Third Point announced a significant stake in Sony (SNE) and suggested to the company’s CEO, Kazuo Hirai, that he should seriously consider spinning out 15‐20% of the company’s undervalued, American-based Entertainment business. At the time, we explained that partially listing the Entertainment segment would have three positive effects: 1) highlighting its profitability; 2) increasing investor transparency, thereby allowing the market to properly benchmark the company against its global media peers; and 3) incentivizing Entertainment’s management to run the company more efficiently by engaging in cost cutting and laying out clear earnings targets.

    While, regrettably, the Company rejected our partial spin-out suggestion, they made some changes that were consistent with our goals. In the Entertainment business in particular, Sony has cut costs, improved its dialogue with investors, and undertaken key management changes. In Electronics, Mr. Hirai’s team deserves credit for transitioning away from personal computers this year and improving television profitability in 2015. They have also improved investor transparency. Still, they have a long way to go and we continue to believe that more urgency will be necessary to definitively turn around the company’s fortunes.


  • Daniel Loeb Comments on Alibaba Group Holding Ltd

    In our Quarterly Letter two and a half years ago, we argued “the Case for Alibaba.” At the time, Alibaba (BABA) held a leading market position that it was just beginning to monetize (the company had less than $75 million in LTM earnings). Today, the Company has continued its exponential growth, demonstrated significant margin leverage, and is expected to earn over $5 billion this fiscal year. Our enthusiasm for the Alibaba story has underpinned multiple investments at Third Point and now that the company is public, we have established a significant direct investment in Alibaba shares.

    Third Point has met with management several times and is confident that Alibaba can generate long‐term value in its core markets and compete in new ones, making it a compelling potential multi‐year investment. The company has a substantial network effect that creates several large moats around its business, generating significant free cash flow for re‐investment and expansion as well as an unrivaled amount of data on Chinese consumers. We see continued end market growth in Chinese consumer spending and e‐ commerce (as well as global e‐commerce) and continue to believe that Alibaba has considerable additional monetization potential.


  • Daniel Loeb Comments on eBay

    We established a significant position in eBay (EBAY) during the Third Quarter. While eBay’s challenges were well‐mapped – including multiple years of minimal value growth, a weak execution track record, and high employee turnover – we sensed it had arrived at a critical inflection point and gained new focus. A meeting with CEO John Donahoe this summer left us impressed by his process‐driven approach to optimizing the business.

    We were pleased when Mr. Donahoe announced in September that eBay would split into two by spinning off its PayPal unit. Our work on Alibaba (BABA) since 2011 had persuaded us of the power of the marketplace model in e‐commerce and our work on AliPay convinced us that PayPal was an incredibly well‐positioned global brand with the potential to become a leading player in mobile payments. Following the spinoff, eBay/PayPal will offer two appealing growth, relative value, and capital return profiles for investors.


  • Daniel Loeb Comments on Amgen Inc

    Since its founding in 1980, Amgen (AMGN) (“the company”) has been a pioneer in the biotechnology industry, successfully discovering, developing, and marketing therapeutic agents that have meaningfully impacted human health. From 1989 to 2002, Amgen grew five revolutionary biologic drugs into billion dollar blockbuster products in oncology, nephrology, and inflammation. Today, Amgen is a $105 billion market cap company with annual revenues of nearly $20 billion and annual net income e of over $5billion.

    Considering this track record, Amgen’s long‐term underperformance relative to its biotech peers is surprising. The company has a compelling mix of long‐duration, high‐margin mature products like Neulasta and Enbrel, and a number of exciting high growth assets, including recently launched blockbusters like Prolia and Xgeva along with innovative late-stage pipeline assets like evolocumab. Yet, using nearly any valuation metric, the Company trades at a substantial discount to peers. Amgen even trades at a discount to the US pharmaceutical sector, despite superior revenue and earnings growth rates. Amgen’s current discount to fair valuation – and the lack of structural hurdles to closing this gap – make it an attractive investment opportunity. Third Point is now one of the company’s largest shareholders.


  • Third Point Q3 2014 Investor Letter

    This is the excerpt from the shareholder letter of Third Point Capital.

    Going forward, we expect that the US will remain the best place to invest, credit opportunities will stay slim, and large cap opportunities with a constructivist angle will become more promising. Although consensus has shifted to lower growth, slower inflation, modest rates, and continued monetary expansion, we think the markets will resume an overall upward trajectory in the US through year‐end.


  • 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 (NYSE: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 (NYSE: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. (NYSE: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 (NASDAQ: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.


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User Comments

ReplyGuardinvest - 1 year 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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