Daniel Loeb

Daniel Loeb

Last Update: 06-26-2018

Number of Stocks: 40
Number of New Stocks: 11

Total Value: $13,319 Mil
Q/Q Turnover: 19%

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

Daniel Loeb past Portfolios

Daniel Loeb 13F Filings

Portfolio DateNumber of StocksTotal Value (Mil)Number of New StocksQ/Q Turnover

Daniel Loeb 13D/G Filings

Filing date : 2018-06-26, 2018-06-14,

Daniel Loeb Watch

  • Dan Loeb Goes After Target With Up to 92.5% Upside

    Daniel Loeb of Third Point LLC is an activist feared for his public letters in which he criticizes company leadership. The Swiss consumer staple Nestle (XSWX:NESN) is one of its current investments. Loeb has been invested for a long time aready but just released a presentation publicly with the changes he wants to see in an effort to drum up support for his campaign. It is an interesting presentation and Loeb suggests some sensible things.

    Nestle is focused on “nutrition, health and wellness.” About half of its sales are generated in growing categories like coffee, pet, nutrition and water. The Swiss giant has over 30 brands that do over a billion in U.S. dollars. I love how it's making 43% of sales in higher growth emerging markets.


  • Dan Loeb Ups Pressure on Nestle in Letter

    With an eye on his $3.5 billion investment in the company, activist value investor Dan Loeb unveiled a letter Friday to the CEO and board of consumer packaged goods giant Nestle (VTX:NESN) urging it to more rapidly implement changes as sales and market share decline.

    Nestle shares have tumbled almost 8% since Loeb launched his activist campaign with money from his hedge fund Third Point and a special fund set up for the investment last June. In his letter, Loeb blamed the “modest pace and magnitude” of the steps Nestle had taken since initial investment for its underperformance, saying it had taken a “muddled strategic approach.”


  • Dan Loeb Slowly Turning Cautious

    Third Point, lead by Dan Loeb, recently published another very interesting quarterly letter. The fund has posted astounding returns since inception:


  • Daniel Loeb Comments on Dover

    Dover (NYSE:DOV)

    Since our last update, Dover has made several significant announcements. Dover decided to spin its energy business, Apergy, thus greatly reducing earnings volatility; 2) switch to “cash” EPS reporting to focus investors on the strong FCF generation of the portfolio; and 3) transition to a new CEO, Richard Tobin, who has a strong background operating industrial assets. Based on Apergy’s current when-issued share price, the Dover RemainCo is currently valued at an 8% FCF yield on our 2019 estimates, which represents a ~30% discount to the US large-cap multi-industry peer group. With a high quality set of remaining assets, increased strategic optionality, and a catalyst rich path over the next several months – completion of the Apergy spin, repurchase of ~7% of outstanding shares, and communication from the new CEO – we believe Dover’s RemainCo will close the valuation gap to its multi-industry peers.


  • Daniel Loeb Comments on Lennar

    Lennar (NYSE:LEN)

    We have long considered Lennar, which is led by Executive Chairman Stuart Miller, the best homebuilder managed by the best team of industry veterans. We initiated our investment shortly after Lennar announced its acquisition of its peer, CalAtlantic. The local market scale created through this transaction will unlock several opportunities to improve unit economics, returns on capital, and accelerate cash flow generation. Management is already ahead of their plans to eliminate duplicative expenses, renegotiate contracts to lower construction costs, and improve production efficiency and sales velocity. Lennar is also ahead of its peers in investing in technology and capabilities to greatly reduce customer acquisition costs, expand financial services, and lower commission rates.


  • Daniel Loeb Comments on DowDuPont

    DWDP (NYSE:DWDP) continues to be one of the fund’s largest positions. We remain confident in the underlying business fundamentals and CEO Ed Breen’s plan to create value. Despite a series of positive developments following the merger’s close last August, the discount to intrinsic value has widened. Several prominent sell-side analysts have noted the similarities between DWDP’s three future spins (Materials Co, Specialty Co, and Ag Co) and three publicly traded peers: LyondellBasell, 3M, and Monsanto. Consensus 2020 EBITDA for DWDP is $23 billion – coincidentally the sum of 2020 estimates for LYB, MMM and MON is nearly identical at $22.5 billion. However, the combined enterprise value for these three companies is $234 billion, about 40% higher than DWDP’s current enterprise value of $167 billion. Simply applying a similar EV to DWDP (which we believe is justified) implies a stock price of $92, nearly 50% higher than current levels. We expect this value gap to close over the next 12 months as synergies are realized and the three spin-offs are finalized.


  • Daniel Loeb Comments on United Technologies Corp

    In the fourth quarter of 2017, Third Point initiated a significant stake in United Technologies Corporation (NYSE:UTX) (“UTC” or the “Company”), a $100 billion industrial conglomerate organized into four business units: Otis Elevator Company (“Otis”), UTC Climate, Controls & Security (“CCS”), UTC Aerospace Systems (“UTAS”), and Pratt & Whitney. UTC has strong franchise assets with leading market share within each segment but the Company’s shares have lagged its industrial peers (XLI Index) by approximately 45% over the last five years. UTC fits a pattern of many underperforming conglomerates where value is diminished by the ill effects of a “one size fits all” approach to corporate strategy, incentive compensation, and capital allocation. At UTC, this has led to a well-documented history of poor management execution – exemplified most recently by the botched ramp-up of the next-generation geared turbofan (“GTF”) engine – as well as market share losses and underinvestment in key business areas. We have initiated a dialogue with UTC’s Board of Directors to express our concerns about the Company’s weak operating performance and the inherent disadvantages of its conglomerate structure.

    To reverse its years of underperformance and realize the full potential of its franchise assets, we believe UTC should split into three focused, standalone businesses: Otis, CCS, and an aerospace company (“Aerospace RemainCo”) encompassing UTAS and Pratt & Whitney. In assessing the potential success of any such split, we ask ourselves two key questions: 1) are the business units and their key stakeholders better off as standalone entities; and 2) does the split create sustainable long-term value? The answer to each of these questions is clearly yes. We are encouraged that the Company’s CEO, Greg Hayes, has indicated that the Board is undertaking a portfolio review. We expect that an honest process will lead the Board to the same inescapable conclusion that UTC should be split into three.


  • Daniel Loeb's Third Point 1st Quarter Investor Letter

    Review and Outlook


  • Daniel Loeb's Top 10 Holdings of 4th Quarter

    Daniel Loeb (Trades, Portfolio), founder of Third Point, whose returns have nearly doubled those in the S&P 500 since its 1996 inception, reported on Friday purchasing 13 stocks during the fourth quarter.

    The hedge fund heavyweight had 44 stocks to end the quarter, with 23.2% allocated to health care and 21.8% to consumer cyclical stocks – the largest sectors represented. The portfolio’s value totaled $13.86 billion.


  • Dan Loeb's Outlook for 2018

    Third Point just released its fourth quarter 2017 letter including an annual review. The Offshore Fund generated +18.1% -- a very good result given its average net long exposure was only 68%. The full letter is embedded below, but I wanted to highlight a few key paragraphs that illustrate Third Point's outlook for 2018. Quotations are clearly marked and followed by my commentary.

    It is an especially interesting letter as Loeb's attitude can be described as tentatively bullish. He seems acutely aware of a few key dangers but also identifies many bullish drivers and doesn't seem fazed by valuations as much as his peers. Or as Loeb puts it:


  • Value Investor Daniel Loeb Emphasizes Goals for Nestle

    Daniel Loeb (Trades, Portfolio) is not done with Nestle (NSRGY). In fact, it appears he’s only just begun.

    In June, the activist investor and owner of the value-oriented investment firm Third Point Management disclosed a $3.5 billion investment in the Swiss company. At that time, he put in writing a number of issues he hoped the company would work on in order to create value for shareholders. These included things like: setting clear goals and matching them up to the company’s portfolio; setting a specific margin target; increasing leverage to return more capital to shareholders; and last but not least, monetizing the legacy stake in L’Oreal.


  • Daniel Loeb Comments on Nestle

    Portfolio Update: Nestlé

    Since we originally outlined our investment thesis to investors last June, Nestlé (OTCPK:NSRGY) has responded by taking several logical steps to create stakeholder value. Our periodic interactions with Nestlé management have been well-received and we expect our dialogue to continue.


  • Daniel Loeb's 4th Quarter Shareholder Letter for Third Point

    Annual Review


  • What Is Working for Daniel Loeb: Alibaba

    Daniel Loeb (Trades, Portfolio) is a market-beating hedge fund manager who employs event-driven value investing, which has worked well for him. He has almost doubled the return of the S&P 500, posting 15.9% annualized versus 8.2% for the index. Year to date, he has just trailed the hot market, with an 18.1% gain compared to a 20.5% rise for the index.

    One of the investments propelling those returns is his fund’s bet on Alibaba (NYSE:BABA). Loeb’s Third Point has a 6.6 billion-share position in Alibaba built up since the second quarter, ranking it as his second-largest holding. His hedge fund, Third Point, also has the second biggest portion of its portfolio allotted to the stock, spanning roughly 9.6% of the long shares listed.


  • Dan Loeb Comments on Nestlé

    On September 26th, Nestlé (NSRGY) held an Investor Day in London. Nestlé’s new CEO, Dr. Ulf Mark Schneider had deferred questions for months about changes in strategy to this presentation, where he proposed to lay out a plan for revitalizing the company. As the first CEO in nearly a century brought to Nestlé from the outside, and as an experienced leader with a strong history of value creation at his previous company, the expectations for Dr. Schneider were high.

    When we disclosed our $3.5 billion investment in the company in June, we laid out four paths to value creation at Nestlé: 1) set a specific margin target; 2) increase leverage to return more capital to shareholders; 3) reshape the portfolio; and 4) monetize the legacy stake in L’Oréal. Dr. Schneider and his team gave a strong presentation which indicated a new approach of greater investor responsiveness. We were pleased with the overall shift in tone, particularly indicated by the willingness to give a specific margin target and commit to selling assets.


  • Dan Loeb Comments on Honeywell

    Third Point initiated a stake in Honeywell (NYSE:HON), the American technology and manufacturing company, last year. We were drawn to Honeywell because of the company’s strong businesses, portfolio optionality, untapped balance sheet, and change in leadership from one excellent CEO to another. In an early meeting with new CEO Darius Adamczyk, we shared our view that a more streamlined Honeywell could accelerate growth and yield sustainable value creation. We argued that spinning off the Aerospace division would be most impactful.

    Management retained advisors and conducted a thorough, data-driven portfolio review. Last week, Honeywell announced plans to split off its homes and transportation units, which have a combined $7.5 billion in annual revenue, into two separate companies by the end of 2018. We were pleased with these actions that will result in greater focus on Honeywell’s core operations. The Board’s decision to keep Aerospace signals management’s confidence in an improving organic growth outlook following years of Aerospace underperformance.


  • Dan Loeb Comments on Dow Chemical Company

    We first disclosed our Dow Chemical Company (LSE:DOW) investment in our Q4 2013 investor letter, arguing that Dow shares were significantly undervalued. We recognized a familiar pattern of a conglomerate that had grown unwieldy, pursuing a strategy of becoming bigger, not better. Accordingly, we proposed that Dow rationalize its business by separating its Agriculture and Specialty Chemicals businesses from its commodity-focused Petrochemical businesses to unlock value for shareholders, writing:

    We believe the benefits from a spin-off, including financial uplift from operational improvements at Dow Petchem Co. and the potential valuation uplift from increased business focus and disclosure, far outweigh the supposed integration benefits… [with a spin] Dow could pave a path toward increased disclosure, greater management accountability for individual business segment performances, and enhanced alignment of interests between management and shareholders.


  • Dan Loeb Comments on Dover Corp.

    During the third quarter, we invested in Dover (NYSE:DOV), an industrial conglomerate with a $15 billion market capitalization. Dover has leading share in several highly consolidated end markets, including retail fueling, industrial printing, retail refrigeration equipment, and artificial lift for U.S. onshore energy production.

    Dover shares have materially underperformed the industrial peer group over the three-year period preceding our investment. A significant earnings decline in Dover’s energy business and the substantial fall in global crude oil prices were the primary drivers behind the underperformance. By this summer, energy commodity prices had stabilized and short cycle industrial end markets began to accelerate. We have been engaged in a constructive dialogue with management regarding several compelling value creation opportunities which are outlined below:


  • Dan Loeb Buys Activist Stake in Dover Corp in 3rd Quarter

    Daniel Loeb (Trades, Portfolio), leader of hedge fund Third Point, disclosed today in a shareholder letter that he purchased a stake in Dover Corp. (NYSE:DOV) in the third quarter and proposed changes at the company.

    Dover captured the activist investor’s attention as low crude oil prices weighing on its energy business drove underperformance at the industrial conglomerate. Loeb said he would push to separate that business, which the company had already been shopping since the summer.


  • Daniel Loeb Buys 8 Stocks in 2nd Quarter

    Daniel Loeb (Trades, Portfolio), the founder of Third Point hedge fund, shared on Tuesday that he loaded eight new stocks into his portfolio in the second quarter, bringing the total to 32, with 24% turnover.

    Loeb’s Offshore Fund, which the activist investors labels as “opportunistic value investing,” has roughly doubled the index since its 1995 inception, returning 15.8% versus 7.9% in the S&P 500. Two of the stocks he added during the second quarter made it to his top-five holdings, BlackRock Inc. (NYSE:BLK) at three and Alibaba Group Holding (BABA) at four.


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