GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Daniel Loeb's Top Five Highlighted by Yahoo! and AIG

November 22, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Daniel Loeb, the founder of the hedge fund Third Point LLC, is oftentimes known for his activist investing. The guru likes to buy such a sizeable portion of a company in order for him to make changes to the company’s structure. The guru has an excellent track record for this style of investing and is fairly well-known in the finance world for writing public letters to the boards of companies in which he expresses disapproval of the performance and workings of a company.

During the third quarter, Loeb purchased shares in nine new companies bringing his total portfolio to 35 stocks. The value of his third quarter is at $4.001 billion. The following five companies are the guru's largest holdings as of the third quarter.



Yahoo! (YHOO)

Daniel Loeb’s largest holding is in Yahoo! where he holds on to 16,000,000 shares of the company’s stock. The guru’s holdings make up for 13.3% of his total portfolio and 1.57% of the company’s shares outstanding.

During the third quarter Loeb made a notable slice of his stake in Yahoo. The guru reduced his holdings -74.19% by selling 46 million shares of the company’s stock. He sold these shares in the quarterly price range of $24.99 to $33.55, with an estimated average quarterly price of $28.28. Since then the price per share has increased a notable 28.4%.

Loeb’s historical holding history of Yahoo:

1385139837782.png

Loeb began cutting his position in Yahoo on July 22, as the company announced that they would be repurchasing over 40 million shares from the guru’s fund, Third Point. The purchase price equaled the closing price of Yahoo! common stock on July 19 which was roughly $29.11 per share.

Yahoo! is a digital media company. Through its proprietary technology and insights, it delivers personalized digital content and experiences, across devices and around the globe, to various audiences.

Yahoo’s historical revenue and net income:

1385140560080.png

The analysis on Yahoo! reports that the company’s price is currently trading at around a 5-year high, its revenue has been in decline over the past five years and its operating margin has been expanding.

The top guru shareholders of Yahoo:

1. Daniel Loeb: 16,000,000 shares, representing 1.57% of the company’s shares outstanding.

2. Andreas Halvorsen: 9,048,894 shares, representing 0.89% of the company’s shares outstanding.

3. Chase Coleman: 8,000,000 shares, representing 0.78% of the company’s shares outstanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

1385141156637.png

Yahoo! has a market cap of $36.94 billion. Its shares are currently trading at around $36.41 with a P/E ratio of 31.30, a P/S ratio of 8.40 and a P/B ratio of 3.00. The company had an annual average earnings growth of 51.30% over the past five years.

American International Group (AIG)

Loeb’s second largest position is in American International Group where the guru holds on to 10,000,000 shares of the company’s stock. Loeb’s holdings make up for 12.2% of his total portfolio as well as 0.68% of AIG’s shares outstanding.

Daniel Loeb did not alter his position in AIG over the past quarter. He sold 3.5 million shares in the second quarter, and since that sell the price per share has increased approximately 14.9%.

Loeb’s historical holding history:

1385141662117.png

American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad.

AIG’s historical revenue and net income:

1385141802537.png

The analysis on AIG reports that the company’s dividend yield is near a 10-year low, its revenue has been in decline over the past five years and its P/S ratio is nearing a 5-year high.

1. Bruce Berkowitz: 86,148,865 shares, representing 5.84% of the company’s shares outstanding and 50.1% of his total portfolio.

2. Fairholme Fund: 79,280,825 shares, representing 5.37% of the company’s shares outstanding and 51.2% of its total portfolio.

3. HOTCHKIS & WILEY: 15,396,372 shares, representing 1.04% of the company’s shares outstanding and 3.4% of his total portfolio.

The Peter Lynch Chart suggests that the company is currently overvalued:

1385141754026.png

American International Group has a market cap of $72.6 billion. Its shares are currently trading at around $49.31 with a P/E ratio of 23.40, a P/S ratio of 1.10 and a P/B ratio of 0.70.

Sothebys (BID)

Daniel Loeb’s third largest holding is in Sothebys where the guru maintains 6,150,000 shares of the company’s stock. His position makes up for 7.6% of his total portfolio and 9.00% of the company’s shares outstanding.

During the third quarter Loeb upped his stake 146% by purchasing 6,650,000 shares of the company’s stock. He bought these shares in the quarterly price range of $38.19 to $49.13, with an estimated average quarterly price of $44.52. Since then the price per share is up about 16.4%.

Loeb’s holding history as of the most recent quarter:

1385143623832.png

Sothebys is an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles. The company's operations are organized into three business segments: Auction, Finance and Dealer.

The historical revenue and net income of Sothebys:

1385141918565.png

The analysis on Sothebys reports that the company’s operating margin is expanding, its revenue has slowed down over the past year, its price is nearing a 5-year high and its P/S ratio is nearing a 10-year high.

The top guru shareholders of Sothebys:

1. Daniel Loeb: 6,150,000 shares, representing 9% of the company’s shares outstanding.

2. Chuck Royce: 3,246,994 shares, representing 4.75% of the company’s shares outstanding.

3. John Rogers: 2,211,204 shares, representing 3.24% of the company’s shares outstanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

1385142517049.png

Sothebys has a market cap of $3.56 billion. Its shares are currently trading at around $51.82 with a P/E ratio of 34.00, a P/S ratio of 4.40 and a P/B ratio of 3.40. The company had an average earnings growth of 12.70% over the past ten years.

FedEx Corporation (FDX)

The guru’s fourth largest position is in FedEx Corporation where he maintains 2,000,000 shares of the company’s stock. His holdings make up for 5.7% of his total portfolio and 0.63% of the company’s shares outstanding.

Loeb made his initial buy in to FedEx over the course of the third quarter. He bought these shares in the quarterly price range of $97.77 to $116.83, with an estimated average quarterly price of $107.92. Since then the price per share has jumped up an additional 26.4%.

Loeb’s historical holding history:

1385144008942.png

FedEx Corporation provides a portfolio of transportation, e-commerce and business services. It operates in four business segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services.

FedEx’s historical revenue and net income:

1385144051391.png

The top guru shareholders of FedEx:

1. PRIMECAP: 19,033,679 shares, representing 6.02% of the company’s shares outstanding.

2. Dodge & Cox: 18,549,478 shares, representing 5.87% of the company’s shares outstanding.

3. Mason Hawkins: 15,500,062 shares, representing 4.9% of the company’s shares outstanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

1385144077051.png

FedEx has a market cap of $43.39 billion. Its shares are currently trading at around $137.04 with a P/E ratio of 27.40, a P/S ratio of 1.00 and a P/B ratio of 2.50. The company had an annual average earnings growth of 2.90% over the past 10 years.

GuruFocus rated FedEx the business predictability rank of 2.5-star.

Liberty Global PLC (LBTYA)

Loeb’s fifth largest position goes to Liberty Global PLC where he holds on to 2,750,000 shares of the company’s stock. His position represents 5.5% of his total portfolio and 0.69%of the company’s shares outstanding.

During the third quarter Loeb reduced his position -8.33% by selling 250,000 shares. He sold these shares in the quarterly price of $73.95 to $81.41, with an estimated average quarterly price of $78.35. Since his sell the price per share has gone up roughly 3.5%.

Loeb’s historical holding history:

1385145196060.png

The Company is an international provider of video, broadband internet and telephone services, with continuing consolidated broadband communications and/or direct-to-home satellite operations.

Liberty Global’s historical revenue and earnings growth:

1385145335446.png

The analysis on Liberty Global reports that the company has issued $4.8 billion of debt over the past three years, its price is near a 10-year high and its operating margin is continually expanding.

The top guru shareholders of Liberty Global:

1. John Griffin: 4,155,000 shares representing 1.04% of the company’s shares outstanding.

2. Lee Ainslie: 3,311,993 shares representing 0.83% of the company’s shares outstanding.

3. Steve Mandel: 3,203,911 shares representing 0.8% of the company’s shares outstanding.

Liberty Global PLC has a market cap of $32.04 billion. Its shares are currently trading at around $81.09 with a P/S ratio of 1.80 and a P/B ratio of 2.60. The company had an annual average earnings growth of 30.10% over the past ten years.

Check out Daniel Loeb’s third quarter portfolio here.

Try a free 7-day premium membership trial here.

Rating: 2.5/5 (2 votes)

Comments

Please leave your comment:


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