Daniel Loeb

Daniel Loeb

Last Update: 11-09-2017

Number of Stocks: 37
Number of New Stocks: 11

Total Value: $11,897 Mil
Q/Q Turnover: 21%

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

Daniel Loeb Watch

  • John Griffin Adds 3 Retail Companies in 3rd Quarter

    John Griffin (Trades, Portfolio), president of Blue Ridge Capital, seeks long-term capital appreciation through investments in companies with strong performance relative to competitors. The former partner of Julian Robertson (Trades, Portfolio) added three retail companies during the third quarter: Ulta Beauty Inc. (NASDAQ:ULTA), O’Reilly Automotive Inc. (NASDAQ:ORLY) and Alibaba Group Holding Ltd. (NYSE:BABA).


    Ulta Beauty

      


  • Jeff Auxier Establishes 6 Positions in 3rd Quarter

    Auxier Asset Management founder Jeff Auxier (Trades, Portfolio) disclosed Nov. 9 he acquired six stocks in the third quarter.


    According to the investment philosophy described on the firm’s website, Auxier believes compounding “is the most valuable and underappreciated investment concept.” He strives to identify undervalued companies that meet several criteria, including strong or improving fundamentals, consistent operating results, a substantial competitive advantage, high returns on capital, understandable products and shareholder-oriented management, among others. Managing a portfolio of 152 stocks, he invests largely in the health care, consumer defensive and financial services sectors.

      


  • Dan Loeb Soars High in Alibaba

    Third Point manager Daniel Loeb (Trades, Portfolio) follows an activist, event-driven approach to investing. During the third quarter, Loeb boosted his Alibaba Group Holding Ltd. (NYSE:BABA) position and initiated three new positions: Vantiv Inc. (NYSE:VNTV), Shire PLC (NASDAQ:SHPG) and Marathon Petroleum Corp. (NYSE:MPC).


    Alibaba rises on strong outlook

      


  • 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.

      


  • Transcript of Joel Tillinghast Podcast Interview

    Holly: Hi, welcome to the GuruFocus podcast. This is Holly. I’m the editor of GuruFocus, and I’m here with Charlie Tian, he joined us for this Skype Interview, and Charlie is the CEO of GuruFocus. And we’re also very fortunate to have Joel Tillinghast today. He is the manager of the Fidelity Low-Priced Stock Fund. That fund has almost 40 billion in assets under management. It is a mid-cap value fund, and it has almost 1,000 stocks in it. And Joel is just one of the top managers in the field today, he’s soundly beaten the S&P, and since inception, and I think he’s rocking it again this year. So Joel, hi. Welcome.


    Joel: Hey.

      


  • 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.

      


  • David Tepper Adds 3 Positions in 2nd Quarter

    Appaloosa Management founder David Tepper (Trades, Portfolio) established three positions during the second quarter: Alibaba Group Holding Ltd. (NYSE:BABA), Altaba Inc. (NASDAQ:AABA) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ).


    Alibaba

      


  • Ken Heebner Goes 3-for-3 in 2nd Quarter

    Ken Heebner (Trades, Portfolio), co-founder of Capital Growth Management, invested in three companies during the second quarter: Copa Holdings SA (NYSE:CPA), Royal Caribbean Cruises Ltd. (NYSE:RCL) and Alibaba Group Holding Ltd. (NYSE:BABA). The guru also axed his positions in Goldman Sachs Group Inc. (NYSE:GS), NVIDIA Corp. (NASDAQ:NVDA) and Teradyne Inc. (NYSE:TER).


    Copa Holdings and Royal Caribbean

      


  • Wells Fargo: Hedge Funds' Most Loved Stock

    Following a guru investor into a position without doing your own research is never a good idea. Wsing guru holdings as a starting point for further research can be extremely helpful, however, especially considering these investors have significantly more resources than you do.


    Studying guru holdings is an excellent way to find stocks flying under the radar and is also a good way to observe market sentiment. Sometimes, companies that have a high percentage of hedge fund owners do not end up performing as expected and, therefore, should be avoided. That being said, there is no set formula for finding those companies you should investigate further and avoid, it all comes down to research and your understanding of the business in question.

      


  • Put Corporate Japan's Cash in Your Wallet

    There are plenty of reasons to keep your money away from Japan, including the declining and aging population, corporate governance and poor capital allocation, just to name a few. Bad news seems to travel quickly, however, and there is still plenty to like about Japan, which is often overlooked. Here, I will shed some light on Japan’s often overlooked good news.


    Corporate Japan’s balance sheet

      


  • Tweedy Browne Comments on Nestle

    Shareholder activism and buyout bids surfaced once again in the second quarter and had more than just a marginal impact on our Fund portfolios. Nestlé (OTCPK:NSRGY)’s surge in June was, in part, a response to the news that Daniel Loeb (Trades, Portfolio), the noted hedge fund manager, had taken a position in the company and remarked that despite the company’s long record of success, there was significant room for improvement. Late in June, Nestlé also announced a planned buyback of shares equal to as much as CHF20 billion. Unilever was also up nicely for the quarter, as speculation continued about a possible renewed bid by Kraft. Elis, the French-based uniform, textile and hygiene company, announced a buyout bid for Berendsen, and the two companies reached agreement on a deal at £12.5 per Berendsen share, or a potential 48% premium to our original cost in the shares. As a result, Berendsen was the best performing stock in the Worldwide High Dividend Yield Value Fund. Other stocks that contributed significantly to the quarter’s results included pharmaceutical holdings, Novartis and Johnson & Johnson.


    From Tweedy Browne (Trades, Portfolio)'s second quarter 2017 shareholder commentary.   


  • Daniel Loeb’s 2 New Stocks

    As Daniel Loeb (Trades, Portfolio), head of Third Point hedge fund, announced this week that his Offshore Fund beat the S&P 500 index year to date, he also disclosed – before his official portfolio has come out – that he purchased two new stocks in the second quarter, Alibaba (NYSE:BABA) and BlackRock (NYSE:BLK).


    For the year through June, Loeb’s return has etched a 10.7% return as the index gained 9.3%. This year, the fund revived after a downbeat 2016 in which the S&P 500 overshadowed its 6.1% gain with a 12.0% rise. Loeb’s Third Point blazed into the investing scene in 1995 and has delivered a 15.87% annualized return in the years since, compared to the S&P 500’s annualized gain of 7.5%, using an event-driven, value-investing style.

      


  • Daniel Loeb Comments on BlackRock

    BlackRock (NYSE:BLK) is world’s largest asset manager, with $5.7 trillion in AUM. In a classic scale industry, BlackRock is an asset -gathering machine, with organic net inflows of over 7% annualized2. Coupled with a tailwind from rising markets, AUM grew 17% year-over-year in the second quarter, which remains a key input for earnings power. Yet we see BlackRock as far more than an asset manager dependent on market movements. It is increasingly becoming a network or index-like business, with earnings power driven by ETFs (via iShares) and data & analytic services (via Aladdin). These are oligopoly businesses with faster growth and much higher incremental margins than traditional asset management – and thus deserve much higher P/E multiples over time. With shares at less than 15x our 2019 EPS forecast, and an outlook for consistent mid-teens EPS growth, we think BlackRock is a misunderstood franchise that is just beginning to inflect.


    BlackRock’s iShares business has over 38% global market share in ETFs, and rising. It took in a record $74 billion of net flows in 2Q – a 21% organic growth rate – and had nearly as many inflows in the first half of 2017 ($138 billion) as all of last year. In the US, iShares had more inflows in 1H17 than the next 10 competitors . We think this acceleration in ETFs is just getting started, as regulatory change globallycmbinedpushes lower-cost, transparent investment products, and institutional investors use ETFs as investment solutions, particularly in fixed income – an area where BlackRock has an even higher global market share for ETF products (~50%). We see iShares delivering mid -teens topline growth over the next 3 years and producing over half of BlackRock’s earnings by 2019. More importantly, this is a business with significant operating leverage as it scales, with far less variable costs from compensation and benefits, which limit the margins of traditional asset managers.

      


  • Daniel Loeb Comments on Baxter International

    Two years ago, we initiated a 9.9% position worth over $1.5 billion in Baxter (NYSE:BAX). An under-earner in the medtech industry with margins trailing its peers, Baxter was about to spin out


    its biopharma business, Baxalta. Shortly after the spin-off, Baxter’s long-time CEO announced his intention to retire. We believed these two major changes at the company presented an opportunity to create a more focused Baxter, cure its under-earning problem, and even make it an industry leader in operational performance – if the company took the right steps. Third Point’s Munib Islam joined the Baxter Board of Directors in September 2015. Munib also participated on the search committee that successfully recruited former Covidien CEO José “Joe” Almeida as Baxter’s new CEO starting on January 1, 2016.

      


  • Daniel Loeb Comments on Baxter International

    Two years ago, we initiated a 9.9% position worth over $1.5 billion in Baxter (NYSE:BAX). An under-earner in the medtech industry with margins trailing its peers, Baxter was about to spin out its biopharma business, Baxalta. Shortly after the spin-off, Baxter’s long-time CEO announced his intention to retire. We believed these two major changes at the company presented an opportunity to create a more focused Baxter, cure its under-earning problem, and even make it an industry leader in operational performance – if the company took the right steps. Third Point’s Munib Islam joined the Baxter Board of Directors in September 2015. Munib also participated on the search committee that successfully recruited former Covidien CEO José “Joe” Almeida as Baxter’s new CEO starting on January 1, 2016.


    Mr. Almeida’s sweeping changes to Baxter’s business over the past 18 months have created meaningful shareholder value. His tenure thus far is a case study on how leadership and cultural change can be transformational. Prior to his arrival, Baxter had guided to 2016 operating margins of 10%, growing to 14% by 2020. Under Mr. Almeida’s leadership, Baxter delivered 2016 operating margins of 13.6% and in May 2016, updated 2020 guidance to 17-18% operating margins. Due to continued strong operational performance, Baxter subsequently upgraded its 2020 guidance to ~20% operating margins on the Q2 2017 earnings call. The increases have been driven by multiple factors including:

      


  • Daniel Loeb Discusses Baxter, Alibaba in Q2 Letter

    Review and Outlook


    During the second quarter of 2017, Third Point earned +4.6% in the Offshore Fund, bringing total returns for the year to +10.7%. We have generated alpha through good stock picking in an environment that has proven unpredictable, but favorable for our opportunistic style.

      


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