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Daniel Loeb Publishes Quarterly Letter; Top Holdings: TDG, ACL, CIT, PHH, HNT, ARG

August 28, 2010 | About:
David Merkel

guruek

80 followers


Daniel Loeb of Hedge Fund Third Point sent his 2Q10 Letter to Investors. His fund Third Point Partners LP returned -3.5% vs. S&P’s -11.4%. If that is not enough of an outperformance, Loeb pointed out that his fund has bounced nicely and through four weeks of August the funds are up 14-16% year to date.

Long term, he has pulled out an outstanding performance, as quoted in the quarterly letter, his annualized return since inception is 21.6%.

Read his complete letter below:

Third Point Q2 2010 Investor Letter


Loeb stated in his letter that he has about $3.3 billion of assets under management as of June 30, 2010. GuruFocus however only records $906 million of LONG equity stock position in 26 stocks. The rest goes into cash, debt, short position and who-knows-what-else, for he takes bet on a wide variety of investment instruments.

Here are his top long positions:

No. 1: TransDigm Group Inc. (TDG), Weightings: 10.14% - 1,800,000 Shares

TransDigm Group, through its wholly-owned subsidiaries, including TransDigm Inc. Transdigm Group Inc. has a market cap of $2.88 billion; its shares were traded at around $58.42 with a P/E ratio of 18.3 and P/S ratio of 3.8. Transdigm Group Inc. had an annual average earning growth of 20.7% over the past 5 years.



Alcon, Inc. is the world's eye care company. Alcon Inc. has a market cap of $48.23 billion; its shares were traded at around $160.64 with a P/E ratio of 21.5 and P/S ratio of 7.4. The dividend yield of Alcon Inc. stocks is 2.1%. Alcon Inc. had an annual average earning growth of 18.3% over the past 10 years.



CIT Group Inc. is a bank holding company that provides financing and leasing capital for commercial companies throughout the world. Cit Group Inc. has a market cap of $7.42 billion; its shares were traded at around $37.07 with and P/S ratio of 1.8.



PHH Corp is a outsource provider of mortgage and vehicle fleet management services. Phh Corp. has a market cap of $1.08 billion; its shares were traded at around $19.42 with and P/S ratio of 0.4.



Health Net, Inc. is an integrated managed care organization which administers the delivery of managed health care services. Health Net Inc. has a market cap of $2.45 billion; its shares were traded at around $24.65 with a P/E ratio of 10.1 and P/S ratio of 0.1. Health Net Inc. had an annual average earning growth of 5.5% over the past 5 years.



Airgas, Inc., through its subsidiaries, is the largest U. Airgas Inc. has a market cap of $5.57 billion; its shares were traded at around $66.72 with a P/E ratio of 23.4 and P/S ratio of 1.4. The dividend yield of Airgas Inc. stocks is 1.3%. Airgas Inc. had an annual average earning growth of 15.1% over the past 10 years. GuruFocus rated Airgas Inc. the business predictability rank of 4-star.



GuruFocus Follows Daniel Loeb’s complete stock portfolio and you can access the information here.

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About the author:

guruek
David J. Merkel, FSA, CFA, is the Chief Economist and Director of Research of Finacorp Securities. His specialty is looking at the interlinkages in the markets in order to understand individual markets better. He holds bachelor’s and master’s degrees from Johns Hopkins University. In his spare time, he takes care of his eight children with his wonderful wife Ruth.

Rating: 3.3/5 (7 votes)

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