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 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.  


  • Daniel Loeb Comments on AIG

    Equity: AIG (AIG)
    We originally purchased AIG shares in March after identifying the US Treasury’s impending sales of its AIG holdings as an instance of one of our favorite types of investments: “forced” (or non-economically-motivated) selling. We determined Treasury was both anchored to its $29 cost basis and intent on exiting its position as soon as possible, allowing us to purchase AIG at a discount to intrinsic value. In addition to the forced selling dynamic that created the opportunity, we believed AIG’s substantial capital return – manifested as buybacks in the Treasury’s offering – provided downside protection. Finally, we also liked the technical bid for AIG shares coming out of the offering, as its index weighting would increase with the reduction in government-owned shares, forcing index-sensitive investors to grow their position in the equity.  


  • Daniel Loeb's Third Point Comments on Murphy Oil

    Long Equity: Murphy Oil (MUR)

    Although we've come to the end of the road  


  • Dan Loeb's Third Quarter 2012 Third Point Investor Letter

    Review and Outlook: After a poor Second Quarter in which fears about macroeconomic contagion caused a capital flight from risk assets, the Third Quarter rewarded stock picking and event-driven situations. Mirroring the First Quarter of this year, our portfolio benefitted from strength across strategies, geographies, and sectors. We matched the market’s 6.4% gain with significantly less exposure. Remarkably, our best performer was a special situation investigative short which imploded, declining over 50% and contributing nearly 1% to results. Core positions like Delphi (DFG), Ally Financial (GMSPZ) and Gold (GLD), which suffered in the Second Quarter, rebounded along with the markets.

    As we discuss in more detail below, the Third Quarter provided many opportunities to initiate or size up high-conviction positions. Following an analysis of our performance for the past several years, we have both reduced our overall number of positions and increased the concentration of capital invested in our “best ideas.” We expect that the decrease in our equity book’s diversification should produce improved but “chunkier” returns, and thus a moderate but acceptable increase in volatility.  


  • Third Point's Daniel Loeb Reveals New Positions, Including Greek Government Bonds

    Third Point’s Daniel Loeb issued his September fact sheet containing his top current positions: Yahoo! Inc. (YHOO), American International Group (AIG), Gold, Apple Inc. (AAPL), Murphy Oil Corp. (MUR) and Greek government bonds.

    The positioning shows that Kraft Foods (KFT) has moved out of his top holdings since last month, replaced by new top positions Murphy Oil and Greek government bonds. Loeb lists the bonds as third in his list of top five winners for the month. The positions in Apple, Murphy and Greek government bonds are of approximately equal size, he says. In a 13F amendment released today, Loeb discloses that the size of his Murphy stake is 1.5 million shares.  


  • Daniel Loeb’s Top 5 New Stocks

    Daniel Loeb, founder of Third Point LLC, a New York-based hedge fund managing over $2.3 billion in assets, bought 22 new stocks in the second quarter for his portfolio of 40 stocks. Read his thoughts on the market and his holdings in his second-quarter letter here.

    The largest new buys are: UnitedHealth Group (UNH), News Corp. (NWSA), Cabot Oil & Gas Corp. (COG), Plains Exploration & Gas Corp. (PXP) and Coca-Cola Enterprises (CCE).  


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