According to current portfolio statistics, a Premium feature of GuruFocus, five stocks in Daniel Loeb (Trades, Portfolio)’s 13F equity portfolio with high performance during the first quarter were CF Industries Holdings Inc. (CF, Financial), EQT Corp. (EQT, Financial), Crown Holdings Inc. (CCK, Financial), Zendesk Inc. (ZEN, Financial) and Archaea Energy Inc. (LFG, Financial).
In 1995, Loeb founded Third Point, a New York-based firm that follows an event-driven investing approach. The firm seeks out-of-favor stocks and pushes management for changes to unlock shareholder value.
As of December 2021, the firm’s $14.32 billion 13F equity portfolio contains 91 stocks with a quarterly turnover ratio of 22%. Investors must be aware that 13F reports do not give a complete picture of a guru’s holdings: While the reports only include U.S. holdings and American depository receipts, they can still provide valuable information. Further, the reports only consider trades and holdings as of the latest portfolio filing date and thus, do not reflect trades made after the filing date.
The top three sectors in terms of weight are technology, consumer cyclical and health care, representing 26.16%, 17.06% and 16.55% of the equity portfolio.
CF Industries Holdings
Third Point owns 1,244,477 shares of CF Industries Holdings (CF, Financial), giving the position 0.62% weight in the equity portfolio.
Shares of CF Industries traded around $107.56, up approximately 43.69% over the past three months. The stock is significantly overvalued based on Thursday’s price-to-GF Value ratio of 1.42.
The Deerfield, Illinois-based nitrogen fertilizer manufacturer has a GuruFocus profitability rank of 9 based on several positive investing signs, which include a high Piotroski F-score of 8, a three-year revenue growth rate that outperforms more than 83% of global competitors, and an operating margin that has increased approximately 21% per year on average over the past five years.
Other gurus with holdings in CF Industries include the T Rowe Price Equity Income Fund (Trades, Portfolio) and Ken Fisher (Trades, Portfolio)’s Fisher Investments.
EQT
Loeb's firm owns 4.975 million shares of EQT Corp. (EQT, Financial), giving the position 0.76% of equity portfolio space.
Shares of EQT traded around $29.98, up approximately 30.25% over the past three months. The stock is modestly overvalued based on Thursday’s price-to-GF Value ratio of 1.28.
The Pittsburgh-based energy company has a GuruFocus financial strength rank of 4 on the back of a weak Altman Z-score of 0.52 and interest coverage ratios outperforming just over half of global competitors.
Crown Holdings
The firm owns 1 million shares of Crown Holdings (CCK, Financial), giving the position 0.77% equity portfolio weight.
Shares of Crown Holdings traded around $128.89, up approximately 19.88% over the past three months. The stock is modestly overvalued based on Thursday’s price-to-GF Value ratio of 1.19.
The Yardley, Pennsylvania-based packaging company has a GuruFocus financial strength rank of 4 based on several warning signs, which include a low Altman Z-score of 2 and interest coverage and debt ratios that are underperforming more than 70% of global competitors.
Zendesk
Third Point owns 1,304,400 shares of Zendesk (ZEN, Financial), giving the position 0.95% equity weight.
Shares of Zendesk traded around $119.69, up approximately 15.11% during the past three months. The stock is modestly undervalued based on Thursday’s price-to-GF Value ratio of 0.81.
The San Francisco-based customer engagement software company has a GuruFocus financial strength rank of 5 on the back of a high Altman Z-score of 4.36 and a solid Piotroski F-score of 5 despite cash-to-debt and debt-to-equity ratios underperforming more than 73% of global competitors.
Archaea Energy
The firm owns 4,454,110 shares of Archaea Energy (LFG, Financial), giving the position 0.57% equity portfolio weight. Shares of Archaea Energy traded around $21.45, up approximately 10.98% during the past three months.
According to GuruFocus, the Houston-based renewable natural gas company’s cash-to-debt ratio of 0.23 underperforms approximately 52% of global competitors.
