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

  • 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.

      


  • Big Solutions to Improve Dow's Balance Sheet

    The Dow Chemical Company (DOW) is the largest U.S. chemical maker by sales. It is engaged in manufacturing and supplying products used primarily as raw materials in the manufacture of customer products and services. The company serves the following industries: appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment.


    In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.

      


  • Diversification, Hedging and Joint-Ventures Are Cabot´s Long-Term Drivers

    Cabot Oil & Gas Corp. (COG) is an oil and gas company engaged in the development, exploitation, exploration, production and marketing of natural gas, crude oil and, to a lesser extent, natural gas liquids. The company also transports, stores, gathers and purchases natural gas for resale.


    In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.

      


  • Absolute and Relative Valuation Models Indicate the Same: Abbot Is a Buy

    Abbott Laboratories (ABT) is engaged in the discovery, development, manufacture and sale of health care products. Market-based metrics indicate that the stock is relatively undervalued. So now let's take a look at the intrinsic value of this company and try to explain to investors the reasons why it is a good buy or not. With a dividend-payment history that affirms its commitment to maximize shareholder wealth, the company raised its quarterly dividend by 57% to $0.22 per share from $0.14. Its dividend yield is 1.67%, ahead of the industry yield of 1.35%. This makes it interesting to analyze the Discount Dividend Model.


    In this article, we present a model that 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.

      


  • Is Liberty Global Speeding Up Too Quickly?

    Liberty Global Plc (LBTYA)’s John Malone has a track record for purchasing small and medium-sized companies, with the goal of expanding the media and communications empire. The most recent example of this strategy was seen at the beginning of the month, when the company acquired the remaining 20% of Chile’s largest cable operator VTR for 10.1 million shares ($422 million). Furthermore, to guarantee the firm’s proper management and elevate the customer experience, VTR has entered Telecom Italy’s Global Partnership Program, which should help improve operational efficiency. However, while there is no doubt about Liberty’s growth prospects, many investment gurus like Eric Mindich (Trades, Portfolio) and Daniel Loeb (Trades, Portfolio) have been reducing or selling out their shares in the company, due to lax returns on investment.


    As Scale Grows, So Does Debt

      


  • Sotheby's Response to Third Point Litigation

    NEW YORK, March 25, 2014 (GLOBE NEWSWIRE) -- Sotheby's (BID) issued the following in response to reports that Third Point has filed litigation against the Company.


    Late last year, Sotheby's adopted a one-year shareholder rights plan, which expires in October 2014 and cannot be extended beyond October 2014 without shareholder approval. It is similar to those adopted by numerous publicly traded companies facing similar situations. Sotheby's shareholder rights plan was adopted in response to rapid accumulations of significant portions of the Company's outstanding common stock, including through derivatives.

      


  • Abbott Capturing Incremental Market Share

    Abbott Laboratories (ABT) is engaged in the discovery, development, manufacture, and sale of health care products. The company’s reportable segments include: Established Pharmaceutical Products, Nutritional Products, Diagnostic Products, and Vascular Products. Non-reportable segments include the Diabetes Care and Medical Optics segments.


    Let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment opportunity.

      


  • Activist Billionaire Daniel Loeb in a Battle for Control of Sotheby’s

    Daniel Seth Loeb is founder of Third Point LLC, a New York-based hedge fund. On Feb. 27, he added Sotheby's (BID) at an average price of $50.51 and on March 11, he added the stock again at an average price of $47.27. He currently holds 6.65 million shares of the stock with a current value of $293 million in his portfolio and his stake in Sotheby's is about 9.6%. So let's take a look at this company and try to explain to investors the reasons why he is betting on it.


      


  • Sotheby's Open Letter to Shareholders Regarding Third Point’s Board Nominees

    SOTHEBY’S SENDS OPEN LETTER TO SHAREHOLDERS


    • Sotheby’s Has the Right Plan and the Right Team to Continue Building Sustainable Value for Shareholders and Clients
    •   


  • Global Market Valuations and Expected Returns – March 6, 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. The S&P 500 continuously hit new highs. What is the situation in the other parts of the world? In February, the key indexes in Europe surged. Germany’s DAX index increased 4.14%. France’s CAC-40 index gained 5.82%. The FTSE 100 index was up 4.60%. Stock markets performances in Asia were weak when compared with in Europe. Japan’s NIKKEI 225 moderately decreased 0.49%. Hong Kong’s Hang Seng Index gained 3.64% and China’s SSE Composite index was up 1.14%.


    On Nov. 4, 2013, chairman of Oaktree Capital Group LLC, Howard Marks, said in Shanghai that China’s equities are “tremendous bargains” while U.S. stocks are “fairly to fully valued.” He believed just as investors were too optimistic on China’s market three years ago, now they were too pessimistic. Right now the Shanghai Composite's price-to-book ratio is about half of 2010's level and the P/E multiple is 42% lower. “We are investing in Chinese equities along with emerging markets,” Marks said. “Investors have lost all confidence in China.”

      


  • Three Billionaires Adjust Portfolio Holdings – Buffett, Watsa and Loeb

    The last week of February was rife with changes to some of the most interesting portfolio positions of prominent investors. Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (BRK.A)(BRK.B) built his stake in DaVita HealthCare Partners (DVA) even higher, Fairfax Financial (TSX:FFH)’s Prem Watsa (Trades, Portfolio) filed down his massive ownership in BlackBerry Ltd. (BBRY) and Third Point’s Daniel Loeb (Trades, Portfolio) continued his advance on Sothebys (BID).

    DaVita (DVA)  


  • Daniel Loeb is Buying BlackBerry–Should You?

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

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


  • Global Market Valuations and Expected Returns – Feb. 6, 2014

    The U.S. stock market had an excellent 2013. The performance of all three major U.S. stock indexes was the best since the financial crisis in 2008. What is the situation in the other parts of the world? Among the key markets in Europe in 2013, Germany’s DAX index increased 25.48%. France’s CAC-40 index rose 17.99%. The FTSE 100 index went up 14.43%. Stock markets performances in Japan were strong. Japan’s NIKKEI 225 surged by 56.72%. Hong Kong’s Hang Seng Index was up only 2.87% and China’s SSE Composite index decreased 6.75%.


    In January 2014, among the key markets in Europe, Germany’s DAX index decreased 2.57%. France’s CAC-40 index moderately went down 3.03%. The FTSE 100 index was down 3.54%. Stock markets performances in Asia were weak too. Japan’s NIKKEI 225 decreased 8.45%. Hong Kong’s Hang Seng Index was down 5.45% and China’s SSE Composite index decreased 3.92%.

      


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

    Activist investor Daniel Loeb (Trades, Portfolio) added T-Mobile US Inc. (TMUS) at a price of $25. It makes me feel that he is betting that the company could be acquired by Sprint Corp. (S) or Dish Network Corp. (DISH). So let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment opportunity.


    Strategic Acquisitions

      


  • Daniel Loeb Comments on Intrexon Corporation

    Equity Position: Intrexon Corporation (XON) ("Intrexon") We initially invested in Intrexon in 2011 in a private round and have continued to accumulate shares since its IPO in August 2013. We believe that Intrexon is an innovation leader in synthetic biology with a unique value proposition and proven leadership team. Most attractive to us is Intrexon's potential to transform multiple industries, including the health, food, and energy markets. 


    Synthetic biology is an emerging discipline that applies engineering design principles to biologic systems. Broadly speaking, synthetic biology is about the design, modification, and regulation of gene programs to produce a desired outcome, such as the production of a novel antibody from a cell culture, the optimization of a specific gene trait in crops, or the amplification of wild type natural gas metabolism into an industrially feasible process. Over the past 15 years, Intrexon has developed deep expertise in synthetic biology as well as the adjacent fields of process optimization and data analysis to create a unique technology platform that enables the iterative, directed improvement of experimental design. 

      


  • Daniel Loeb Comments on T-Mobile

    T-Mobile (TMUS) – We had the opportunity to establish a position in T-Mobile in November when the Company conducted a secondary offering at $25. The offering represented a favorable relative valuation versus peers, enhanced by recently improved relative operating performance and an attractive EBITDA growth trajectory. 


    In addition to T- Mobile's fundamental v alue proposition, the Company is strategically interesting for Sprint and potentially DISH, which has driven shares higher. The analyst community has offered mixed messages on the prospects for a merger with Sprint, indicating an unwillingness on the part of the DoJ and FCC to approve consolidation while acknowledging the significant financial and scale disadvantages Sprint and T-Mobile face and the inevitability of a combination. Perhaps the starkest examples of the reality of the U.S. wireless industry are the incredible gaps analysts expect in subscriber net additions and free cash flow between 2013 and 2015. During the same period, Sprint and T-Mobile are expected to continue to lose share on a combined basis, attracting less than 15% of industry net additions compared to their current joint subscriber market share of just under 30%. Meanwhile, AT&T and Verizon are expected to generate over $83 billion of combined free cash flow between 2013 and 2015, while Sprint and T-Mobile are expected to burn an unhealthy $10 billion of cash together as they cede market share. 

      


  • Daniel Loeb Comments on Sony

    Sony (SNE) – While the rejection of Third Point's proposal to partially list the Entertainment business proved costly for shareholders, we are hopeful that the Company's commitment to improve transparency, increase margins, better allocate capital among divisions, and hold division management accountable will lead to our goal: increasing shareholder value. Despite the rise in the Company share price earlier in the year, Sony shares still trade significantly below their sum of the parts valuation. 


    Sony started 2014 strongly at the Consumer Electronics Show in Las Vegas, winning two best-of-show awards for PlayStation 4 and the Xperia phone. The show's highlight was news that Sony had sold 4.2 million Playstation 4's in 2013 versus 3.0 million Xbox One's. Sony appears set to sustain strong global momentum with the Japanese launch of the Playstation 4 in February. February is also rumore d to mark the launch of Sony's Xperia Z2 phone, with the potential for meaningful distribution expansion in North America and elsewhere.

      


  • Daniel Loeb Comments on Ally Financial

    Third Point has invested across the capital structure of Ally Financial (ALFI), the former GMAC, throughout the company's multi-year reorganization. Today's Ally Financial ("Ally") fits the pattern of other profitable investments we have made: a highly successful, nearly-completed restructuring that remains undervalued, with an explosive earnings story led by a talented management team who are economically aligned with shareholders.


    We invested initially in 2011 in Ally's unsecured debt and preferred securities because we believed market estimates of potential liabilities related to the company's w holly owned mortgage subsidiary, Rescap, were excessive. When Ally stopped funding its losses through direct loans and sought to distance itself from Rescap 's b allooning potential liabilities in 2012, Rescap filed Chapter 11. After nearly one year of creditor negotiations, Ally permanently settled all mortgage related liabilities for approximately $2 billion, a figure that was consistent with our expectations. During this period, Ally initiated a radical operational restructuring that included divesting all of its international operations and their associated $30 billion of assets and jettisoning Rescap, transforming Ally into a pure-play North American auto finance company with leading market share. 

      


  • Daniel Loeb Comments on Dow Chemical Company

    Third Point's largest current investment is in The Dow Chemical Company (DOW)("Dow"). Dow shares have woefully underperformed over the last decade, generating a return of 46% (including dividends) compared to a 199% return for the S&P 500 Chemicals Index and a 101% return for the S&P 500.1 Indeed, in April 1999, nearly 15 years ago, an investor could have purchased Dow shares for the same price that they trade at today! These results reflect a poor operational track record across multiple business segments, a history of under-delivering relative to management's guidance and expectations, and the ill-timed acquisition of Rohm & Haas. The company's weak performance is even more surprising given that the North American shale gas revolution has been a powerful tailwind for Dow's largest business exposure – petrochemicals. 


    We believe that Dow would be st serve shareholders' interests by engaging outside advisors to conduct a formal assessment of whether the current petrochemical operational strategy maximizes profits and if these businesses align with Dow's goal of transforming into a "specialty" chemic als company. The review should explicitly explore whether separating Dow's petrochemical businesses via a spin - off would drive greater stakeholder value.

      


  • Daniel Loeb Third Point - Q4 2013 Investor Letter



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User Comments

Guardinvest
ReplyGuardinvest - 5 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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