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's Second Quarter Increases

    Daniel Loeb is a renowned hedge fund manager and the founder and chief executive of Third Point. During the second quarter, Daniel Loeb bought six new stocks bringing his total number of stocks to 33 valued at $4.414 billion.

      


  • Daniel Loeb Comments on Yahoo

    Equity Position: Yahoo (YHOO)

    Last week, we sold approximately two-thirds of our stake in Yahoo. In addition, the three Third Point nominees to the company's Board of Directors –Daniel Loeb, Harry Wilson, and Michael Wolf – submitted their resignations as required by the settlement agreement ending our proxy contest in 2012. We continue to hold approximately 20 million shares and the investment's IRR is just over 50%since inception.  


  • Daniel Loeb Comments on CF Industries

    Equity Position: CF Industries (CF)

    CF Industries is North America's largest nitrogen fertilizer manufacturer and one of the lowest-cost producers globally. CF currently trades at an unwarranted discount to fertilizer and commodity chemical peers. We believe its structural cash flow generation strength is misunderstood and that management should deliver a much larger dividend to its shareholders. Such a dividend would highlight the sustainability of its cash flow generation and lead to a substantial re-rating.  


  • Daniel Loeb Comments on Sony Corporation

    Equity Position: Sony Corporation (SNE)

    Third Point acquired a significant stake in Sony Corporation ("Sony") earlier this year, and in May, we unveiled a proposal to increase value by partially listing Sony's Entertainment ("Entertainment") business in the U.S. Our investment thesis is that Sony – composed of Electronics, Finance, and Entertainment – is not well understood by investors and is therefore significantly undervalued. Sony's Entertainment division has leading franchises in movie and television production and distribution via Columbia Pictures and Sony Pictures Television, and is one of the top recorded music and publishing companies in the world. Sony also has coveted global cable network assets, including a strong position in the fast-growing Indian market. Electronics is best known for its struggling televisions and VAIO computers but its true value lies in its strong semiconductor and video game console divisions, and its resurgent smartphone business. At the time we made our initial investment, we believed that at our purchase price we were acquiring Entertainment at an attractive value while receiving Electronics nearly for free, giving us a substantial margin of safety.  


  • Daniel Loeb's Third Point Second Quarter 2013 Investor Letter

    Review and Outlook: Third Point's opportunistic approach and robust framework allow us to search globally for attractive event-driven equity and credit opportunities and occasional"macro" trades. Our broad mandate has made it increasingly essential to study economic trends and attempt to identify key areas to dedicate our resources. Over our eighteen years, this flexibility has given us the ability to avoid (or short) asset classes that become overvalued, such as tech stocks in the bubble of the late '90s or credit leading up to 2007, and to press bets in areas that become oversold. As a result, our portfolio is built not only by reacting to special situations that arise, but also from top down insights.

    At our Investor Presentation in February, we outlined four key developments we expected would lead to interesting investment ideas in 2013: a) increasing allocations to equities as a consequence of a more benign macro environment; b) a re-rating of stocks due to improving global economic growth; c) a resurgent Japan; and d) an increase in merger and acquisition activity reflecting rising corporate confidence. More than halfway through the year, all of these developments have played out as expected, and a majority of our profits have come from event-driven investments in American and Japanese equities.  


  • Daniel Loeb Sells 40 Million Shares of Yahoo

    On July 22 Daniel Loeb decreased his position in Yahoo! (YHOO) by 66.77%. The guru sold a total of 41,400,000 shares at an average price of $29.11 per share. This sell comes as Yahoo! announced that they would be repurchasing 40 million shares held by Loeb’s fund, Third Point. The purchase price equaled the closing price of Yahoo! common stock on July 19.

    Since this sell, the price per share has dropped approximately 3%. As of the first quarter Loeb held 5.63% of the company’s shares outstanding, but as of his most recent sell he holds 1.87% of Yahoo’s shares. Daniel Loeb now owns 20,600,000 shares of Yahoo!, keeping him as the top guru shareholder.  


  • 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 (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 (SNE), via a less strongly worded letter to top management than usual. He could be out to replicate his success with Yahoo (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. (HLF), Yahoo (YHOO) and Virgin Media (VMED) as the fund’s top performers. Virgin Media (VMED) is up 127% over 12 months, while Herbalife (HLF) is down 4% over 12 months. Here’s a current look at Daniel Loeb’s other top holdings.  


  • 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.  


  • 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 (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 (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.  


Add Notes, Comments or Ask Questions

User Comments

No comment yet



Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK