Daniel Loeb (Trades, Portfolio), founder and leader of Third Point, disclosed this week that he established a position in FinTech Acquisition Corp. V (FTCV, Financial) according to GuruFocus Real-Time Picks, a Premium feature.
Third Point focuses on activist investing, seeking situations in which a catalyst event unlocks shareholder value. As of the December 2020 filing date, the New York-based hedge fund's $12.97 billion equity portfolio contains 74 stocks with 35 new holdings and a turnover ratio of 27%.
Third Point purchased 3 million shares of FinTech Acquisition, giving the position 0.27% weight in the equity portfolio. Shares traded around $11.80 on the March 24 transaction date.
Blank-check company sets merger with social investment company
On March 16, social investment network company eToro Group Ltd. announced that it entered a definitive merger agreement in which eToro will combine with FinTech V and form a publically-traded company. The merger includes commitments for approximately $650 million in common share private placements from investors including Third Point.
EToro discussed in its press release that it added during 2020 over 5 million registered users and generated revenues of $605 million. The New York-based company added 1.2 million users during January and has over 20 million users as of March.
The combination is expected to close during the third quarter subject to shareholder approval and other customary closing conditions. The expected equity value of $10.4 billion reflects an enterprise value for eToro of approximately $9.6 billion.
Third Point's top five holdings as of the December 2020 filing are PG&E Corp. (PCG, Financial), The Walt Disney Co. (DIS, Financial), Danaher Corp. (DHR, Financial), IAA Inc. (IAA, Financial) and Upstart Holdings Inc. (UPST, Financial). The top three sectors in terms of weight are consumer cyclical, communication services and technology, representing 22.39%, 18.27% and 15.44% of the equity portfolio.
Disclosure: The author has no positions in the stocks mentioned. Except for Loeb's real-time pick in Fintech V, the mention of trades in this article reflect information as of the December 2020 and do not consider any trades and portfolio hedges that Loeb or Third Point made during the first three months of 2021.
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