Daniel Loeb

Daniel Loeb

Last Update: 05-13-2016

Number of Stocks: 37
Number of New Stocks: 13

Total Value: $10,857 Mil
Q/Q Turnover: 25%

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

Daniel Loeb Watch

  • 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.

      


  • 'Macro Tourist' Trade

    What do Daniel Loeb and Bill Ackman have in common? Both are well known for their hedge fund activist investing. Loeb in the ensuing years has transitioned from activist to macro hedge fund manager; evident from his stellar return in Greek government bonds and most recently, from the Japan trade (initial currency/index trade). Ackman, despite his recent hiccup in few investments such as J.C. Penney (NYSE:JCP) and Herbalife (NYSE:HLF), had also dabbled in macro investing such as in Hong Kong dollar back in 2011. As Ackman put it recently, “The current printing of money is a 'non-sustainable' situation." Hong Kong should adjust is currency peg, he said, and he has a small position essentially shorting it.

    There is no such thing as an unblemished track record, unless you run a Madoff scheme. Interestingly, while Loeb is short JPY and long JPY index/selected stocks, Kyle Bass has dubbed anyone who is long JPY stock is a “macro tourist.” Bass has taken a short position in Japanese Government Bonds (JGB) since 2010. It remains to be seen if the widow-maker trade will eventually pan out. Nonetheless, as George Soros succinctly puts it, "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."  


  • 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 (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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. (NASDAQ:YHOO)  


  • Third Point (Dan Loeb) Q4 2012 Letter



  • Daniel Loeb Reports New Top Position – Virgin Media

    Aside from arguing with Bill Ackman about Herbalife (NYSE:HLF), the founder of $11.6 billion hedge fund Daniel Loeb in February acquired a new second-largest position, Virgin Media (NASDAQ:VMED), according to his fund’s monthly update. The position sits underneath Yahoo (NASDAQ: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%.  


  • Market Cycle Analysis & Five-Year Rolling Analysis of Guru Performance

    Market Cycle Analysis In our research of John Hussman’s performance, we observed that he underperformed the market if we look at the latest 3-year annualized return, 5-year annualized return and even 10-year annualized return. Yet this might not be the case if we look at his performance over a complete economic cycle.

    We believe that the performance over fixed time periods, like the latest 3-year, 5-year and 10-year, might be misleading since a single bad year performance would ruin all. Therefore, we believe the best way to measure funds’ performance is to check the performance number over complete market cycles.  


  • Vanity Fair's Story on Bill Ackman, Featuring Bike-Ride Meltdown

    Editor’s Note: There is as much ego as money behind Dan Loeb and Bill Ackman’s battle over the nutritional company Herbalife (NYSE:HLF). The story of their cycling trip from Bridgehampton to Montauk, which has practically achieved urban-legend status in the hedge-fund eco-system, provides a vivid example of what is at stake for the two former friends. Vanity Fair contributing editor William D. Cohan gets Ackman's response on the ride in a story on the rivals that will appear in the April issue. Read an excerpt here—the full story will be released next week.

    The supremely confident billionaire hedge-fund manager Bill Ackman has never been afraid to bet the farm that he’s right.  


  • Dan Loeb Reduces Largest Holding, Yahoo!

    Daniel Loeb reduced his position in largest holding Yahoo Inc. (NASDAQ: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.  


  • Apple – The Guru Winners, Losers and Buyers on Stock Pullback

    Apple (NASDAQ:AAPL)’s stock has gone from bad to worse this year, plunging 12% already this afternoon to $453 a share, significantly off of its 52-week high of $705 reached in September. Only recently talk abounded that Apple would hit $1,000 per share, and perhaps achieve first company with a trillion-dollar market cap status. Some GuruFocus Gurus escaped just in time, others lost, and still others are greeting this as a temporary market dip before Apple continues on to greatness.  


  • Loeb Rumored to Short Nu Skin, Herbalife Rival

    After taking an 8 percent stake in Herbalife (NYSE: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 (NYSE: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.  


  • An Overview of the Herbalife Events Between Ackman and Loeb

    The first great financial war of 2013 has started, and it has nothing to do with Greek bonds or the debt ceiling or the Grand Bargain. Instead, it’s a hedge-fund-on-hedge-fund brawl about multilevel marketing of weight-loss supplements.  


  • Can Yahoo be a Tech Leader Again?

    During the third quarter of 2012, David Einhorn, Daniel Loeb, Joel Greenblatt and Ray Dalio bought into Yahoo (NASDAQ:YHOO), one of the leading providers of Internet information. The company was once the leading information website before competitors came along and found a way to deliver better results. Then an outdated platform eventually did Yahoo in. Consumers quickly gravitated towards newer and more reliable websites that offered a better search engine. Yahoo, furthermore, became irrelevant as most people who worked for the company were incompetent or appeared uninterested in reviving its business. Yahoo became nothing more than a stagnant business that offered nothing but inferior qualities and little to no advantages over its closest competitors.

    But this has all started changing recently with a revamped management team more serious and focused on reviving Yahoo, a renewed willingness to invest and grow company resources, and a surplus of cash that increases the company’s flexibility. Yahoo could be gaining steam for the following reasons:  


  • Talks of Carl Icahn Getting a Piece of Herbalife, Joining Loeb in Long Position

    After fellow activist investor, Daniel Loeb set off the media earlier this week with his declaration to obtain a long position in Herbalife (NYSE:HLF), a company that Pershing Square’s Bill Ackman just shorted weeks ago, corporate raiding Guru Carl Icahn has been reported yesterday afternoon of joining Loeb in taking a piece of the action.

    Herbalife, a nutritional supplement company that uses a multi-level marketing approach, was labeled a pyramid scheme by Ackman days before Christmas, dropping the stock down more than 15 percent. A few weeks have gone by, along with Loeb’s initiation, and the stock is seen slowly recovering. The stock is down only 0.64 percent Friday morning.  


  • Herbalife's President Appears on CNBC to Refute Ackman's Claims

    What a start to 2013! Ackman goes public in grand fashion with a 9 million-page short presentation on Herbalife (NYSE:HLF) promising to dedicate his profits to charity.

    Then to make things even more interesting, both Daniel Loeb and now Carl Icahn have taken the long side of Herbalife. Icahn and Ackman have long had a real hate for each other, so this story is going to be one for the ages.  


  • Bill Ackman Comments on Dan Loeb's 8 Percent Herbalife Stake



  • Daniel Loeb Comments on Murphy Oil

    Murphy Oil (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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 Counters Bill Ackman by Taking 8 Percent Herbalife Stake

    “Event-driven value investor” Daniel Loeb viewed Herbalife (NYSE:HLF)’s stock price drop due to Bill Ackman’s $1 billion short announcement as an opportunity to buy a lot of the company. GuruFocus Real Time Picks reports that Loeb has purchased 8.9 million shares of Herbalife, an 8.24% stake in the company, on Jan. 3, 2012. He filed a 13G with the SEC, meaning he does not have activist intentions.

    Shares of Herbalife tumbled as low as 38% in December after Bill Ackman unveiled Pershing Square’s short position in the company. On Dec. 20, Ackman lambasted Herbalife in a 342-slide presentation at a Sohn Conference event in New York, calling it a “pyramid scheme” and saying that it preys on the most vulnerable, low-come segments of society. He has even set up a website dedicated to unmasking its supposed business transgressions.  


  • 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. (NASDAQ:YHOO) and American International Group (NYSE:AIG). Loeb describes his firm as event-driven value investors.

    Greek Government Bonds
      


  • SolarCity’s IPO Up and Running, Gurus Who Own Competing Companies Brought to Light

    Trading under the stock symbol SCTY as of this morning, “clean energy” provider SolarCity appears to be experiencing positive activity in the market so far, as its stock has surged nearly 30 percent over its $8-a-share initial public offering price. The company had delayed its IPO by a day because it struggled to decide on a price for its 11.5 million offered shares. Upon reaching a decision, SolarCity shares, which opened at $9.25, now trades at $11.84 — its highest for the day so far was $12.70.

    With a market cap of around $600 million reported by CNN, SolarCity is a company that installs solar panels for its clients, spanning from 14 states, through 31 operations centers (solarcity.com). Its business model is set apart from other solar companies, being that it is the only company that finances its own services of installing rooftop solar systems in exchange for long-term monthly payments from its customers, without involving third parties. The company, whose chairman is Tesla Motors (TSLA)'s Elon Musk, also provides additional services including energy efficiency evaluations, electric vehicle charging services, energy monitoring software and battery storage solutions.  


  • 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. (NYSE:MUR), Kraft Foods Group (KRFT), Nexen Inc. (NYSE:NXY), Symantec Corp. (NASDAQ:SYMC) and Wesco International (NYSE: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 (NASDAQ:YHOO), AIG (NYSE:AIG), Gold (GLD), Apple (NASDAQ:AAPL), Murphy Oil Corp. (NYSE: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 (NYSE: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 (NYSE: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. (NASDAQ:YHOO), American International Group (NYSE:AIG), Gold, Apple Inc. (NASDAQ:AAPL), Murphy Oil Corp. (NYSE: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.  


  • How Smart People Go Bankrupt

    I just read the book “When Genius Failed” by Roger Lowenstein and can’t help writing about the story. I have tried to shorten it as much as possible but I fear that I may have overreached at several places. I recommend that the book be read in its entirety.

    Our story begins in 1988. John Meriwether (henceforth called JM), an MBA from University of Chicago, was the head of bond trading and also held the post of vice chairman at Salomon Brothers, a Wall Street investment bank which would be acquired by Travelers in 10 years.  


  • 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 (NYSE:UNH), News Corp. (NASDAQ:NWSA), Cabot Oil & Gas Corp. (NYSE:COG), Plains Exploration & Gas Corp. (NYSE:PXP) and Coca-Cola Enterprises (NYSE:CCE).  


  • Daniel Loeb Comments on Progress Energy Resources Corp

    From Third Point's second-quarter letter:

    Long Equity and Debt: Progress Energy Resources Corp.  


  • Daniel Loeb Comments on Delphi

    From Third Point's second-quarter letter:

    Long Equity: Delphi (DFG) Update  


  • Daniel Loeb Comments on Yahoo

    From Third Point's second-quarter letter:

    Third Point's investment in Yahoo! (NASDAQ:YHOO) appreciated 4% during the second quarter. Due to Yahoo!'s concentrated size in our funds, this modest appreciation still made it the biggest winner for the period.  


  • Daniel Loeb Comments on Yahoo, Delphi, Europe in Second Quarter Letter

    Review and Outlook
    The second quarter was marked by choppy markets caused by fears about Europe, a soft patch in the U.S., more signs of a Chinese slowdown, and U.S. consumers and business owners alike frustrated by the Obama Administration, which is openly hostile to most businesses and unable to articulate or implement policies to spark growth and reduce unemployment. Since "Euro‐phobia" has roiled the markets for over twelve months, we attributed the second quarter's sell‐off mostly to the renewed worries over US weakness and pervasive concerns about a Chinese hard landing, which punished any assets linked to global growth.  


  • Daniel Loeb Continues to Buy Yahoo Shares

    It is no surprise that Daniel Loeb likes Yahoo (NASDAQ:YHOO), but another purchase of a parcel of shares affirmed it. On July 23 – a week after the company announced the appointment of new President and COE Marissa Miller – he added 4,212,400 Yahoo shares at about $15.76 per share.

    Loeb began amassing his Yahoo stock in 2011, the year the company’s revenue dropped to $5 billion from $6.3 billion the previous year, its lowest level since 2004. It immediately became clear through a vociferous and public letter-writing campaign Loeb launched that he wanted to force change at the company. One of his victories was ousting the company’s then-CEO, Scott Thompson, after exposing untruths on Thompson’s resume in May. Shortly thereafter, he won a seat on the board of directors that hired Mayer.  


  • Giving Credit Where Credit Is Due…Thank You Daniel Loeb

    There are a few things that I feel many people get wrong. One of them that I discuss here is the idea that simply taxing the rich is a solution to every money problem. Another one that I wanted to discuss briefly is the idea that hedge funds, activist investors and other large funds are the root of all evil and bad for the markets in general. The actual example occurred last week when Yahoo named its new CEO, Marissa Mayer, an incredible hire. The fact is that like so many others, I have been extremely critical of Yahoo over the years. Its leadership, coming from the very top was terrible, leading a company that once was a jewel into the ground slowly but surely. Worst of all was the board. You can blame Carol Bartz all day long but when CEO after CEO that not only performs poorly but reflects poorly on the company, led to massive talent losses, etc…

    Something Had To Be Done

    In a situation like this, everyone was losing. Shareholders, employees, users, etc. But what could be done? It’s difficult and sometimes even possible for small investors to get together and fire a board…  


  • SAC’s Cohen Follows Loeb and Einhorn in Starting Reinsurer for Capital

    Steven A. Cohen, the billionaire founder of SAC Capital Advisors LP, started a reinsurance company that can invest in his hedge fund, following Daniel Loeb and David Einhorn in entering the business to secure more permanent capital.

    SAC Re Holdings Ltd. is being run by Simon Burton and will focus on high-margin catastrophe coverage and casualty protection, the Bermuda-based company said in a statement today. The company’s investments will be managed by SAC Capital, which oversees about $14 billion out of Stamford, Conn.  


  • Dan Loeb's Third Point Discloses Stake in Chesapeake Energy

    Dan Loeb of Third Point hedge fund has reported Chesapeake (NYSE:CHK) was his fourth-largest holding, but does not say what type of investment they have in the company:

      


  • CEO and President of Hollyfrontier Michael Jennings sold 110,000 shares

    HollyFrontier Corporation is engaged in refining petroleum. Hollyfrontier has a market cap of $6.74 billion; its shares were traded at around $31.8 with a P/E ratio of 5 and P/S ratio of 0.4. The dividend yield of Hollyfrontier stocks is 1.8%. Hollyfrontier had an annual average earnings growth of 22.5% over the past 10 years.

    On June 20, CEO and President of Hollyfrontier (NYSE:HFC) Michael Jennings sold 110,000 shares at an average price of $34.12. The total transaction amount is $3,753,200.  


  • How Hedge Fund Manager Dan Loeb Thinks about macro and Express Their Bets

    In a previous article we asked the question on Should Value Investors Pay Attention to the Macro Picture? We think that value investors should spend most of them time studying companies. Our readers pointed out that Warren Buffett made a lot of bets based on his view on macro.

    Hedge fund activist investor Dan Loeb makes a large amount of bets based on macro. His view is worth sharing here as he has built great track record. His Offshore Fund gained 17.5% a year since inception in 1996. During the same period S&P500 gained only 6%.  


  • Why Hedge Fund Third Point's Dan Loeb Likes Apple

    Hedge Fund Third Point bought 362,000 shares of Apple in the first quarter of 2012. This is why Dan Loeb likes Apple (NASDAQ:AAPL), according to his latest investment letter.

    Long Equity: Apple (NASDAQ:AAPL) Following Apple’s December quarter earnings, we re‐established a position in the stock at $445 per share, a level 10% up from the pre‐earnings price. While the market reacted positively to the strong results, we believed it was still not discounting adequately the strong likelihood that Apple would return capital in 2012. The prospect of capital return stood to broaden the investor base enabling the market capitalization to re‐base around an attractive dividend profile, particularly relative to the Company’s growth rate. Beyond the capital return catalyst, we were focused on Apple’s entry into the 4G device space in 2012, led by the latest iPad and the pending iPhone 5.  


  • Daniel Loeb Buys Big Stakes in Delphi, Apple, Google

    Daniel Loeb, founder of $8.9 billion hedge fund Third Point LLC, bought 26 new stocks for his 43-stock portfolio in the first quarter of 2012, with some major changes — seven of his top-ten holdings are new buys. For his top new buy, he devoted 10.3% of his portfolio to Delphi Auto Plc (NYSE:DLPH), followed by positions in Apple Inc. (APPL), UTD Techs Corp. (NYSE:UTX), Google Inc. (NASDAQ:GOOG), and Medco Health Solutions (MHS).

    Loeb also added 25.89% to his largest position, Yahoo (YHOO). More than 44% of his quarter-end portfolio was invested in the technology sector. The positioning earned him a 12.4% return in the first quarter, roughly in line with the markets. In the last 10 years, Loeb returned 261.7% cumulatively, compared to 34.9% for the S&P 500.  


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