Daniel Loeb

Daniel Loeb

Last Update: 08-11-2017

Number of Stocks: 32
Number of New Stocks: 8

Total Value: $11,282 Mil
Q/Q Turnover: 24%

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

Daniel Loeb Watch

  • Daniel Loeb Comments on Honewell

    TheFirstQuarter of 2017 markeda turning point in both capital and credit in European financials. As the reflation trade has picked up steam, European banks have maintained lower valuations than US banks (0.7x vs. 1.2x book), driven by a lack of confidence in capital and an inadequate clearing mechanism for legacy non-performing loans (NPLs). The ECB recently noted there were still € 921 billion of NPLs at significant EU financial institutions. However, its guidance on NPLs, released with NPL in ratios March, >3x offered the level a firm of US but and pragmatic Japanese pproach banks to accelerate NPL resolutions and Q1 2017 was the second biggest quarter for announced capital issuance in over five years. While at home the opportunity in financials is linked closely to rising rates, banks in Europe offer a different hook: tangible progress on balance sheet clarity.

    Third Point recently made an investment in UniCredit SpA (MIL:UCG), which raised €13 billion in fresh capital in March, the largest rights issue in European financials since 2009. UniCredit is the second largest listed bank in Italy and has a significant presence in Germany and Austria. We invested in their last rights issue in early 2012, similarly taking advantage of significant volatility during the rights period to establish our position.


  • Dan Loeb's 1st Quarter Investor Letter

    Review and Outlook

    During the First Quarter of 2017, volatility declined and most markets rose in anticipation of global reflation. Third Point generated returns across credit and equity strategies and most sectors through successful security selection and portfolio repositioning. New investments during the quarter were initiated primarily in the financials, industrials, and energy sectors.


  • Daniel Loeb Buys JPMorgan, Time Warner, Bank of America

    Daniel Loeb (Trades, Portfolio) founded Third Point LLC in 1995 and leads the firm’s research activities, portfolio and risk management. During the fourth quarter of 2016, he bought shares in the following stocks:

    The investor purchased 5,250,000 shares of JPMorgan Chase & Co. (NYSE:JPM), establishing a postion. The trade had an impact of 4.45% on the portfolio.


  • Daniel Loeb Picks Up Rate-Sensitive Financials, Drops Pharma

    Daniel Loeb (Trades, Portfolio)’s weighting in financial services expanded to 14.4% from 6.3% in the fourth quarter, as he bought shares of three big banks and nixed several positions in health care.

    The manager of Third Point hedge fund dropped pharma company Allergan (NYSE:AGN) from his portfolio after blaming it and Amgen (NASDAQ:AMGN) for low returns in his equity portfolio, which gained 6.1% for the quarter, versus a 12% rise in the S&P 500. Loeb opted for more balance entering January, but shifted his strategy when Donald Trump’s victory in the 2016 presidential election took him by surprise.


  • Daniel Loeb's Third Point Hedge Fund 4th Quarter Commentary

    Review and Outlook


  • 5 Stocks That Have Gotten Cheaper in Market's All-Time High

    President Donald Trump takes credit for many things, but he can unmistakably be credited for the market’s sudden rise to record highs since his victory in the Electoral College. While the S&P 500 has gained 5.6% since Nov. 8, not all companies have benefited from the so-called “Trump bump,” particularly in sectors cowering from negative projections of his stated opinions and policies.

    Health care, hanging in limbo with the potential repeal of Obamacare looming, is the only S&P 500 sector to decline in the past year. It’s down 2.35%, though its constituents still carry a relatively high P/E of 32.02, compared to 26.1 for the index. A closer look shows that the two health care industries to fall the most over the past year also had the highest valuations. Health Care Technology, down 20.3%, had a P/E of 118.6 last year; Biotechnology, docked 11.2%, had a P/E of 46.


  • Steve Mandel Expands Consumer Cyclical Empire in 3rd Quarter

    Steve Mandel (Trades, Portfolio), a long-short equity money manager, founded Lone Pine Capital in 1997. The guru invests in companies with a fundamental analysis and bottom-up approach, which incorporates both value and growth methodologies. He expanded his consumer cyclical empire in the third quarter by investing in two travel companies and two online retail companies.



  • David Tepper Expands Technology and Financial Empire

    David Tepper (Trades, Portfolio), founder of Appaloosa Management, has earned a reputation for producing top market returns among Wall Street guru investors. The distressed debt specialist primarily invests in companies at cheap prices and sells them as the stock price increases.

    During the third quarter, Tepper invested in 12 companies, five of which are in the technology or financial services sectors.


  • Daniel Loeb Buys Apple, Online Stocks

    Daniel Loeb (Trades, Portfolio) bought nine stocks in the third quarter, but the majority was of tech and internet companies.

    Buying 2.5 million shares, Loeb’s $282.6 million stake in Apple Inc. (NASDAQ:AAPL) was his largest new holding and one he bought after its price dipped by 9% in the first half. Loeb has weaved in and out of Apple in the past, last ousting a stake in the fourth quarter 2014 at an average price around $76. He bought back in at a quarterly average price around $106.  

  • A High-Tech Manufacturer With Excellent Growth Prospects

    When AMETEK (NYSE:AME) reported its third-quarter results Tuesday, it continued its give-and-take story of this year: gains from recent acquisitions and losses from exposure to the oil and gas industry.

    AMETEK designs and manufactures electronic instruments, electromechanical devices and other products. It specializes in products that demand high precision or accuracy, and these differentiated products help it generate strong margins.


  • Daniel Loeb Comments on Akarna Therapeutics

    Akarna Therapeutics TPV was a founding investor in Akarna in Q1 2015. Akarna focuses on the treatment of Nonalcoholic Steatohepatitis (NASH), also known as fatty liver disease. Akarna was attractive for several reasons:

    • Large market opportunity: Epidemiologic studies suggest that NASH affects 2 – 5% of Americans and is believed to be correlated with increasing rates of obesity, diabetes, and high cholesterol. If left untreated, NASH can lead to liver fibrosis, cirrhosis, and, ultimately, end-stage liver disease. Unfortunately, there are no currently approved treatments for NASH.

  • Daniel Loeb Comments on Apigee

    TPV initially invested in Apigee (NASDAQ:APIC) in July 2008 when the company was known as Sonoa Systems. The company originally targeted their hardware appliance-based technology at Systems Oriented Architecture (SOA), challenging the industry-leading IBM as enterprises quickly developed to connect application elements over networks. After recognizing in 2010 that there was a transformational opportunity to apply Sonoa’s core technology, Third Point Ventures helped the company rebrand itself as Apigee and pivot to a focus on enterprise digital transformation via a software platform for APIs (Application Programming Interfaces).

    Since then, APIs have become the highway for the fast-moving digital economy. Apigee’s industry-leading API platform enables enterprises to meet the demands of customers with scalable and flexible digital technology. API platforms allow businesses to increase innovation while adapting to highly variable customer needs by securely providing shared data and services. The Apigee Edge API Management Platform connects digital experiences in a secure environment. Apigee’s API platform delivers analytics, security, developer portals, monetization, and policy enforcement. Since 2010, over 300 leading global enterprises have selected Apigee to enable their digital business, including more than 30% of the Fortune 100, four of the top five Global 2000 retail companies, and five of the top ten global telecommunications companies.


  • Daniel Loeb Comments on Sprint

    Sprint (NYSE:S) has been another of our best performing investments this year. We were able to initiate our position at an attractive entry point in Q1 amidst the energy-driven dislocation in the credit markets and after the bonds were downgraded in February over concerns about Sprint’s near-term corporate debt maturities. We believed we were protected on the downside since the company has minimal outstanding senior or secured facilities and could likely issue new bonds higher in the corporate capital structure to refinance the pending maturities. The company is also continuing to improve its business by strengthening the network in key areas, growing the subscriber base, opportunistically incorporating strategic partnerships, and executing an attractive cost of capital cycle.

    From Third Point's third-quarter 2016 commentary.


  • Daniel Loeb Comments on EMC Corp

    During the Second Quarter, Dell announced a large bond issuance to finance the acquisition of EMC Corp. While the Dell issuance is not a situation that would traditionally be popular with event-driven or distressed credit mandates, we believed market dynamics led the deal to price ~200bps wider than where we valued the bonds. Following its own LBO in 2013, Dell significantly improved its business through a variety of operational improvements and cost cutting initiatives. We believed the company would follow a similar playbook with the EMC (NYSE:EMC) acquisition and that the pro forma company would be a market leader in several areas including external storage, integrated infrastructure, and server virtualization software. Dell has stated a goal of achieving investment grade ratings within 18 – 24 months of the acquisition, setting a path to tightening in long duration bonds and to attractive returns for our portfolio.

    From Third Point's third-quarter 2016 commentary.


  • Daniel Loeb Gives Third Point 3rd Quarter Shareholder Letter

    Review and Outlook

    Third Point returned approximately 5% during the Third Quarter, outpacing the S&P 500 index by 1% and the CS Event -Driven index by 2%, with approximately half the net equity exposure. Results were driven by profits in each of our sub strategies – Equities, Sovereign and Corporate Debt, Structured Credit, Risk Arbitrage, and Privates – and also in each geographic area in which we invest globally. We generated alpha in each month of Q3. Despite a difficult year for hedge funds generally and a challenging start to the year for us, we have delivered positive returns for the year to date. Our results have been driven by a number of idiosyncratic opportunities that we have invested in over the past six months and we see more of the same types of ideas in our pipeline.


  • Arnold Schneider's Best-Performing Stocks

    Arnold Schneider is president, chief investment officer and principal of Schneider Capital Management Corp. He manages a portfolio composed of 68 stocks with a value of $534 million. The following are the best performers of his investments.

    Marathon Oil Corp. (MRO) with a market cap of $12.01 billion has gained 17.0% year to date. Schneider's stake represents 0.11% of the company's outstanding shares and 2.66% of his total assets.


  • 21 Questions With Michael Zapata of Sententia Capital Management

    1. How and why did you get started investing? What is your background?

    Much of my experience with finance and investing is self-taught as I grew up in humble beginnings. The first lesson I learned was to work hard and divide the first part of your paycheck to tithes and savings. For investing, the first spark came in the fifth grade through a stock pick competition. I remember picking Xerox (NYSE:XRX) for one of my three stocks because the school had a bunch of Xerox machines. That one pick propelled me to the top percentage of my school's region. Granted, I had no idea what I was doing, but that experience would stick with me.


  • Daniel Loeb Expands Position in Enphase Energy

    Daniel Loeb (Trades, Portfolio) of Third Point LLC increased his position in Enphase Energy Inc. (NASDAQ:ENPH) by 7.33% on Sept. 28.

    Loeb founded Third Point LLC in 1995 and serves as CEO and portfolio manager. Loeb and his firm are activist investors, meaning they take an active position in a company and pressure management for change. They follow an event-driven, value-oriented investment style.


  • 20 Questions With Mark Spiegel of Stanphyl Capital Management

    How and why did you get started investing? What is your background?

    I always had a casual interest in the stock market, going back to high school in the late 70s when I opened an account at a local broker and bought a stock about which I knew little except that the New York Times stock tables said it had a really low PE ratio-- I think it was 4, or something like that. It was an Amex-listed company called Outdoor Sports International (the ticker was OSI) and I think it wound up getting bought out, thereby maybe doubling the $200 or so I put into it. (I had no real idea what I was doing-- it was just semi-dumb luck!) Then in my senior year of high school I worked part time in the local Paine Webber office doing clerical work for one of the brokers-- basically, just helping him keep track of his customers' trades. In college though I mostly lost touch with stocks and when I graduated I wound up spending 17 years as a commercial and industrial real estate broker in the "outer boroughs" (Queens, Brooklyn and the Bronx) of New York City. I didn't realize it at the time, but working with a lot of different kinds of businesses actually turned into terrific "real world experience" for when I later became an investment banker and then a full-time investor. In the late 90s-- while I was still in the real estate business-- stocks were going crazy and my interest in them was rekindled. I wound up making a nice chunk of money buying low-PE microcap "value tech" stocks before they really took off like their big-cap brethren, while simultaneously losing some money shorting several of the bubble stocks because I didn't have the experience and fortitude to stick with them before they collapsed. However, on a net basis I'd made good money on the long side (and kept it-- I sold what at the time seemed to be "too early" but in fact was only "months" too early) and decided in January 2000 to sell my half of my real estate company to my partner to try to invest full-time. (Talk about top-ticking the market, and not in a good way!) I then spent a couple of years teaching myself a lot more about finance, studying scores of accounting and financial analysis textbooks, books about Wall Street history, etc. I then paid the most useful (and expensive!) stock market tuition possible: I fell in love with a microcap tech story-stock, rolled almost all of my previous profits into it and went to work for the company in a sales & marketing position. Well, being "inside" a story-stock and comparing that experience with its simultaneous press releases and earnings conference calls was one of the most valuable experiences an investor can have! After spending a year there I sold the stock at a huge loss, left the company (the product failed and most of the sales staff was laid off anyway), and decided that with a combination of my real-world business knowledge (from my commercial real estate days), book knowledge (from all the financial textbooks and history books I'd read) and story-stock knowledge (the experience I just related), I was ready to actually get a real job on Wall Street. However, this was 2003 and NO ONE was hiring, especially a 42 year-old guy with no previous jobs on the Street. Fortunately, one young guy running the New York office of a tiny investment bank saw my resume and was intrigued by the commercial real estate experience. He figured "This guy helped CEOs find their offices and warehouses and we help CEOs find their money, so if he can relate to CEOs one way he can relate to them other ways too." So he hired me on an "eat what I kill" basis (i.e., I'd get a percentage of the banking fees I brought in) and sponsored me for my Series 7 & 63 licenses, and I was off and running, cold-calling companies. I got a few deals done and simultaneously started investing again, mostly in microcaps but this time-- thanks to my own experience-- with a much better "smell detector," lol. My portfolio grew nicely and then in 2006 I went to a larger investment bank and had enough success there that I was recruited to a still larger bank in late 2007. All this time I was investing my own portfolio (even within the somewhat restricted confines of the various i-banks personal trading policies) and in 2009 I left my last i-bank to invest full-time, but this time with the goal of using my accumulated experience to open a hedge fund. I had really good returns in my personal account from 2005 through 2011 and had them audited to use as part of my fund marketing materials, and then in 2011 I opened Stanphyl.


  • Yum Brands Agrees to Sell Part of China Business

    Yum Brands (NYSE:YUM), the owner of KFC and Pizza Hut, has entered into a deal with Primavera Capital and an affiliate of Alibaba Group (NYSE:BABA) to sell a part of its Chinese operations as the American restaurant giant plans to spin off its China business.

    Primavera Capital, together with Ant Financial Services, will acquire a collective stake of $460 million in Yum Brand China.


  • Railroad Companies Offer High Margin Potential

    As of Sept. 21, several companies in the railroad industry have an efficient business operation. Two companies, Canada Pacific Railway Ltd. (NYSE:CP) and Union Pacific Corp. (NYSE:UNP), have a selling, general & administrative expense to gross profit ratio of about 30%, which suggests durable competitive advantage. With low SGA expenses, these companies have potential for high profit margins.

    The efficiency ratio


  • Medical Companies Offer Good Value Opportunities

    Due to the great financial crisis, most companies were undervalued based on their valuations. Based on backtesting results, the “Peter Lynch Growth with Lower Valuation” test portfolio took positions in Baxter International Inc. (NYSE:BAX) and Abbott Laboratories (NYSE:ABT), two medical companies that reached historically low price-earnings ratios. While these companies presented good value opportunities from 2007-2011, other medical companies provide better opportunities in 2016.

    Brief introduction of Peter Lynch


  • Daniel Loeb Exits Amgen, Trims Dow Chemical

    Daniel Loeb (Trades, Portfolio) founded Third Point LLC in 1995 and leads the firm’s research activities, portfolio and risk management. During the second quarter the guru's largest sales were as follows:

    The guru exited his stake in Amgen Inc. (AMGN) with an impact of -4.14% on the portfolio.


  • Carl Icahn Buys Allergan

    During the second quarter, Carl Icahn (Trades, Portfolio) of Icahn Capital Management acquired a new holding in Allergan PLC (NYSE:AGN).

    Icahn is an activist investor, meaning he takes a position in a company and pressures management for change. Typically, he buys companies with low favorability, usually right out of bankruptcy, fixes them up and sells them when the stock is more favorable.


  • Daniel Loeb Goes 2 for 2 in Online Media Companies

    Founded in 1995, Third Point LLC seeks long-term capital appreciation through “event-driven, value-oriented investing.” As discussed in its prospectus, Daniel Loeb (Trades, Portfolio) invests in companies that are undervalued, or mispriced, based on market and relative valuation analysis. During the second quarter, the CEO made four trades in the online media and communications industries: two news buys, one reduction and one elimination.

    Loeb purchased 3.75 million shares of Facebook Inc. (NASDAQ:FB) at an average price of $115.23 per share. The social networking company currently has a financial strength rank of 9, implying a strong business operation. As mentioned in an earlier article, Facebook has high Piotroski F-scores and Altman Z-scores. With a current Z-score of 41.73, Facebook has almost no distress.


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