Daniel Loeb

Daniel Loeb

Last Update: 2014-11-14

Number of Stocks: 41
Number of New Stocks: 11

Total Value: $8,714 Mil
Q/Q Turnover: 26%

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

Daniel Loeb Watch

  • 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.  


  • Daniel Loeb Comments on Herbalife

    Herbalife (HLF) is a leading provider of weight management and nutritional supplements operating in more than 80 countries through a network of independent distributors. The stock declined by nearly half last month following controversial assertions made by a short seller about Herbalife’s business model and practices. Third Point has a different view and holds about 8% of Herbalife outstanding common stock, which we acquired mostly during the panicked selling that followed the short seller’s dramatic claims.

    Based on its strong financial performance, Herbalife is a classic “compounder” – a well-managed company that sustains consistent top-line growth, has a leading market position,and steadily increases margins, earnings per share and free cash flow while demonstratingshareholder-friendly behavior. Since going public in 2004, Herbalife has increased revenueat a double digit rate for seven of the past eight years, expanded gross and operating margins, leveraged operating expenses, and introduced more premium products. Earnings per share have increased by approximately 20-50% each year since 2004, with the exception of 2009. Led by CEO Michael Johnson, management has also used the company’s ample free cash flow to de-lever its balance sheet and shrink the share count by nearly 25%. This type of steady non-cyclical growth is hard to find and puts Herbalife at the head of the compounders’ class.  


  • Daniel Loeb Comments on Murphy Oil

    As we explained in our Third Quarter Letter, Third Point initiated a significant stake in Murphy (MUR) following a 3-year period in which Murphy's share price declined by ~15% while the SPDR S&P Oil and Gas E&P Index appreciated by ~49%. Our thesis was that the company had many routes to unlock latent, meaningful value, among them – and most significantly – a highly accretive spin-off of its retail business.

    Two weeks after our letter, Murphy's management announced a series of shareholder-friendly initiatives that have been met with market enthusiasm. In addition to announcing a separation of the retail business via a tax-free spin, management unveiled a $1 billion share repurchase program and a $2.50 per share special dividend. While we applaud these first steps, we expect the company to announce further moves to address its still-depressed valuation, including sales of its Montney asset and 5% stake in Syncrude. Natural gas acquisition activity in Western Canada has continued vigorously since we called for the sale of the Tupper asset, and recent deals in the space have confirmed our valuation expectations.  


  • Daniel Loeb Beats the Market with Yahoo, Japan and Cheniere Energy

    In a difficult quarter for hedge funds, and rather pleasant one for the S&P 500, Daniel Loeb bested the market with a 13.3% in his Ultra Fund in the first three months of the year, according to CNBC. By comparison, the S&P returned 10%, and the average hedge fund eked out just 3.13%. Loeb, the leader of hedge fund Third Point well known for his stormy business shakeups in his activist investment targets and event-driven investment strategy, saw several points of his strategy blossom this year.

    Yahoo! Inc. (YHOO)  


  • Third Point (Dan Loeb) Q4 2012 Letter



  • Daniel Loeb Reports New Top Position – Virgin Media

    Aside from arguing with Bill Ackman about Herbalife (HLF), the founder of $11.6 billion hedge fund Daniel Loeb in February acquired a new second-largest position, Virgin Media (VMED), according to his fund’s monthly update. The position sits underneath Yahoo (YHOO), meaning it must have less than a 26.6% weighting in his portfolio, and above physical gold.

    Virgin Media’s market price has increased almost 30% year to date, trading at $47.63 per share on Monday, placing it at Third Point’s second “top winner” of the month, in which his Offshore Fund returned 1.2%, compared to 1.2% for the S&P. Third Point was up 6% for the year through the end of February, also trailing the S&P’s 6.6%.  


  • Dan Loeb Reduces Largest Holding, Yahoo!

    Daniel Loeb reduced his position in largest holding Yahoo Inc. (YHOO) by 15.07% on Feb. 1, 2012, according to GuruFocus Real Time Picks. After the sale, he owns 62,000,000 shares. The founder of hedge fund Third Point LLC began building his 6.17% Yahoo stake in the third quarter of 2011 when the price averaged about $14 per share. Loeb chose to trim the position after a strong rally in the stock, implying he may believe its current three-year high share price is near its intrinsic value.

    Yahoo shares began to move in October 2012, and have gained 21% in the last six months to date. On Monday, the price fell 2.13% to close at $19.34 a share, giving Loeb a substantial gain.  


  • Loeb Rumored to Short Nu Skin, Herbalife Rival

    After taking an 8 percent stake in Herbalife (HLF) earlier this month, a company that’s on several hedge fund managers’ shorting lists, including Pershing Square’s Bill Ackman, activist investor Daniel Loeb of Third Point has allegedly made a baffling decision to short Herbalife rival, Nu Skin Enterprises (NUS).

    Nu Skin is a company that produces and sells anti-aging and nutrition products. And just like Herbalife, it operates through a multi-level marketing business model.  


  • Daniel Loeb Comments on Murphy Oil

    Murphy Oil (MUR)
    As we explained in our Third Quarter Letter, Third Point initiated a significant stake in Murphy following a 3-year period in which Murphy’s share price declined by ~15% while the SPDR S&P Oil and Gas E&P Index appreciated by ~49%. Our thesis was that the company had many routes to unlock latent, meaningful value, among them – and most significantly – a highly accretive spin-off of its retail business.  


  • Daniel Loeb Comments on Tesoro Corporation

    New Equity Position: 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 Loeb Comments on Morgan Stanley

    New Equity Position: 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.  


  • Daniel Loeb Comments on Herbalife

    New Equity Position: Herbalife (HLF): Herbalife is a leading provider of weight management and nutritional supplements operating in more than 80 countries through a network of independent distributors. The stock declined by nearly half last month following controversial assertions made by a short seller about Herbalife’s business model and practices. Third Point has a different view and holds about 8% of Herbalife outstanding common stock, which we acquired mostly during the panicked selling that followed the short seller’s dramatic claims.

    Based on its strong financial performance, Herbalife is a classic “compounder” – a well-managed company that sustains consistent top-line growth, has a leading market position, and steadily increases margins, earnings per share and free cash flow while demonstrating shareholder-friendly behavior. Since going public in 2004, Herbalife has increased revenue at a double digit rate for seven of the past eight years, expanded gross and operating margins, leveraged operating expenses, and introduced more premium products. Earnings per share have increased by approximately 20-50% each year since 2004, with the exception of 2009. Led by CEO Michael Johnson, management has also used the company’s ample free cash flow to de-lever its balance sheet and shrink the share count by nearly 25%. This type of steady non-cyclical growth is hard to find and puts Herbalife at the head of the compounders’ class.  


  • Daniel Loeb’s Top 3 Growth Stocks

    Increasingly, legendary activist investor Daniel Loeb, founder of New York-based hedge fund Third Point LLC, has long locked-in his reputation in the investing world largely by stirring media controversy through his very public shareholder letters that boldly highlight his aggressive attempts to push for change and replenish company board seats.

    Case in point, Loeb’s successful proxy contest with Yahoo (YHOO) last year, penning letters mocking, in his words, Yahoo’s “crappy interface” and “stupid logo,” as well as expressing that Yahoo “had one of the most horrendous management teams” he’d ever seen.  


  • Daniel Loeb Up 21 Percent on Wins in Greek Bonds, Yahoo, AIG

    Daniel Loeb’s Third Point hedge fund, which has $10.1 billion in assets under management, has achieved a 21.2% year-to-date return, compared to 16% for the S&P 500. This is after gaining 3.6% in December, outpacing the S&P’s 0.9%. The outperformance was driven by his best-performing investments: Greek government bonds, Yahoo! Inc. (YHOO) and American International Group (AIG). Loeb describes his firm as event-driven value investors.

    Greek Government Bonds
      


  • Daniel Loeb Reshuffles Portfolio – Murphy Oil, Kraft, Nexen, Symantec Biggest Buys

    Daniel Loeb, who routinely kills in the market at his New York-based, $8.7 billion hedge fund Third Point LLC, has updated his third quarter portfolio. The largest positions to join his portfolio in the quarter include Murphy Oil Corp. (MUR), Kraft Foods Group (KRFT), Nexen Inc. (NXY), Symantec Corp. (SYMC) and Wesco International (WCC).

    The manager has beat the S&P 500 43% to -1.1% cumulatively in the last five years targeting undervalued companies and, often, firing critical letters at their underperforming executives.  


  • Loeb’s Top Stocks Not Discussed in His Q3 Letter - Yahoo, Gold, Apple

    Daniel Loeb, founder of $9.3 billion hedge fund Third Point, on Tuesday announced his September top positions in his monthly report: Yahoo (YHOO), AIG (AIG), Gold (GLD), Apple (AAPL), Murphy Oil Corp. (MUR) and Greek government bonds. He did not specify which were long or short positions. From January to the end of the third quarter, Loeb’s fund returned 10.9%, compared to 16.4% for the S&P 500. He also has a 17.2% annualized return since inception, compared to 10% for the S&P.

    Yesterday, Loeb published his third quarter letter, in which he gave his analysis of the markets and several of his holdings. He said he is confident in the positions he holds amidst continued macroeconomic and political uncertainty, and has increased capital concentration in his best ideas. “Our portfolio is filled with compelling, attractively-valued, catalyst-oriented situations that are appropriately sized to our convictions,” he wrote. A portfolio of short positions is set to protect against unforeseen volatility.  


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User Comments

Guardinvest
ReplyGuardinvest - 1 week 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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