Nicholas Hunt/Getty Images Entertainment
Nicholas Hunt/Getty Images Entertainment
This article is part of a series that provides an ongoing analysis of the changes made to Dan Loeb’s 13F stock portfolio on a quarterly basis. It is based on Third Point’s regulatory 13F Form filed on 2/14/2024. Please visit our Tracking Dan Loeb’s Third Point Portfolio series to get an idea of their investment philosophy and our last update for the fund’s moves during Q3 2023.
This quarter, Loeb’s 13F portfolio value increased from $6.59B to $6.64B. The 13F portfolio is very concentrated with the top three holdings accounting for ~37% of the entire portfolio. The number of holdings decreased from 42 to 37. 26 of the holdings are significantly large (more than ~0.5% of the portfolio each) and they are the focus of this article. The largest five individual stock positions are PG&E, Microsoft Corporation, Amazon.com, Bath & Body Works, and Danaher Corp.
Third Point returned 3.4% in 2023 compared to 26.3% for the S&P 500 Index. Annualized returns since December 1996 inception are at 12.9% compared to 9% for the S&P 500 Index. In addition to partner stakes, Third Point also invests in the float of SiriusPoint (NYSE:SPNT) and capital from London listed closed-end fund Third Point Offshore (OTCPK:TPNTF). To know more about Dan Loeb's Third Point, check out his letters to shareholders at their site. His activist investing style is covered in the book "The Alpha Masters: Unlocking the genius of the world's top hedge funds".
Note 1: They have a significant portfolio of investments through their venture firm, Third Point Ventures.
Note 2: Large equity investments not in the 13F report include UBS Group AG (UBS), Shell plc (SHEL), Glencore plc (OTCPK:GLNCY), Sony (SONY), EssilorLuxottica (OTCPK:ESLOY), and Nestle (OTCPK:NSRGY). The UBS stake was built after the transaction for Credit Suisse was announced. The Shell stake was built over the three quarters through Q1 2022 while the Glencore plc position was established during Q1 2022. SONY is a $1.5B investment made in June 2019 when the stock was trading at around $50 per share. It is currently at $85.66. The ESLOY investment was made in early 2019 when the stock was trading at ~$62.50 per share. It currently trades at ~$109. The NSRGY position is from 2017 and the stock has moved from ~$75 to ~$105 now.
Fleetcor Tech. (FLT) and Verizon (VZ): FLT is a 2.62% of the portfolio position established this quarter at prices between ~$222 and ~$283 and the stock currently trades at ~$281. The 2.61% position in VZ was purchased at prices between ~$30.70 and ~$39 and it now goes for $40.35.
Apollo Global Management (APO), McKesson Corp (MCK), EQT Corp (EQT), and BioMarin Pharma (BMRN): These small (less than ~1.3% of the portfolio each) stakes were established during the quarter.
Option Care Health (OPCH): OPCH was a 2.67% position that saw a ~55% increase in the last quarter at prices between $30.66 and $35.45. The stake was disposed this quarter at prices between ~$26.30 and ~$34. It is now at $32.52.
T-Mobile US (TMUS) and Regal Rexnord (RRX): TMUS was a 2.12% position established last quarter at prices between ~$133 and $143. It was sold this quarter at prices between ~$136 and ~$162. It now goes for ~$166. The small 1.41% RRX stake was purchased last quarter at prices between ~$142 and ~$165. The disposal this quarter was at prices between ~$100 and ~$152. The stock is now at ~$167.
Alphabet Inc. (GOOG): GOOG was a 1.79% of the portfolio position purchased during Q1 2023 at prices between ~$87 and ~$109. The next quarter saw a ~70% reduction at prices between ~$104 and ~$128. The last quarter also saw a ~37% selling at prices between ~$117 and ~$139. The elimination this quarter was at prices between ~$123 and ~$143. The stock currently trades at ~$134.
PG&E Corp (PCG): PCG is currently the largest 13F stake at ~14% of the portfolio. The position came about as a result of participating in a PIPE (terms for the bankruptcy exit financing in 2020 called for up to $10.50 per share purchase price). There was a ~9% trimming during Q2 2023 while last quarter saw a ~5% increase. The stock currently trades at $16.43. This quarter saw a minor ~2% stake increase.
Meta Platforms (META) and United States Steel (X): META is a fairly large ~6% of portfolio position established last quarter at prices between ~$283 and ~$326. The stock currently trades at ~$490. There was a minor ~5% increase this quarter. The ~4% United States Steel stake was purchased last quarter at prices between $22.47 and $32.43 and the stock is now at $47.76. There was a ~16% stake increase this quarter.
American International Group (AIG): AIG is a 3.52% of the portfolio stake established during Q4 2022 at prices between ~$48 and ~$64. There was a ~42% selling during Q1 2023 at prices between ~$47 and ~$65. This quarter saw a ~17% stake increase. The stock currently trades at $73.92.
Vistra Corp (VST): The 2.67% portfolio stake in VST saw a ~28% increase this quarter at prices between ~$31.40 and ~$39. The stock currently trades at $58.89.
Microsoft Corporation (MSFT): The ~11% of the portfolio MSFT position was purchased during Q4 2022 at prices between ~$214 and ~$257 and it is now at ~$403. There was a ~45% stake increase during Q2 2023 at prices between ~$275 and ~$348. That was followed by a similar increase in the last quarter at prices between ~$312 and ~$358. This quarter saw a ~9% trimming.
Amazon.com (AMZN): AMZN is a 9.61% of the portfolio position established during Q2 2023 at prices between ~$98 and ~$130 and the stock currently trades above that range at ~$174. There was a ~14% stake increase in the last quarter at prices between ~$126 and ~$145. This quarter saw a ~10% trimming.
Danaher Corp. (DHR): The top five 7.14% DHR stake was established in Q3 2015 at prices between $60.90 and $71.50 and increased by two-thirds in Q1 2016 at prices between $62 and $74. There was a ~20% stake increase in Q1 2019 at prices between $98 and $132 while H1 2020 saw a ~20% selling at prices between $129 and $177. H1 2022 had seen another similar reduction at prices between ~$237 and ~$316. There was a ~17% stake increase during Q3 2022 while this quarter saw a similar reduction. It currently trades at ~$254.
DuPont de Nemours (DD): The ~4% of the portfolio stake in DD was established in Q1 2021 at prices between ~$69 and ~$86 and it is now at ~$69. There was a ~11% stake increase in Q4 2021 while the next quarter saw similar trimming. Q3 2022 saw a ~23% selling at prices between ~$50 and ~$63 while in the next quarter there was a similar increase at prices between ~$50 and ~$72. Q1 2023 saw a one-third further increase at prices between ~$68 and ~$78. That was followed by a ~15% increase in the next quarter. The last quarter saw a ~10% trimming and that was followed by a ~17% reduction this quarter.
Jacobs Solutions (J), and Uber Technologies (UBER): The 3.42% Jacobs Solutions position was increased by 29% in the last quarter at prices between ~$119 and ~$137. The stock currently trades at ~$147. This quarter saw a minor ~3% trimming. The 0.93% UBER stake was increased by 51% in the last quarter at prices between $42.11 and $49.46 and it is now at ~$79. This quarter saw the position sold down by ~75% at prices between ~$41 and ~$63.
Ferguson plc (FERG): FERG is a 3.17% of the portfolio position purchased during Q3 2022 at prices between ~$103 and ~$128. There was a ~40% stake increase during Q1 2023 at prices between ~$128 and ~$150. The stock is now at ~$201. This quarter saw a ~15% trimming.
International Flavors & Fragrances (IFF): IFF is a 2.51% of the portfolio stake established during Q4 2022 at prices between ~$85 and ~$108. There was a ~15% stake increase over the two quarters through Q2 2023 while the last quarter saw a ~7% trimming. The stock is now at $76.72. This quarter saw a ~17% trimming.
Taiwan Semi (TSM): The 1.84% TSM stake was established during Q2 2023 at prices between ~$82 and ~$107. The stake was decreased by 28% in the last quarter at prices between ~$84 and ~$105. That was followed by a one-third reduction this quarter at prices between ~$85 and ~$105. It now goes for ~$135.
Intercontinental Exchange (ICE): The 1.35% ICE stake was established during Q2 2023 at prices between ~$104 and ~$113. There was a ~30% stake increase in the last quarter at prices between ~$107 and ~$118.This quarter saw a ~70% selling at prices between ~$105 and ~$129. It is now at ~$139.
Hertz Global (HTZ): The 0.33% HTZ position was purchased during Q4 2021 at prices between ~$19 and ~$35. The three quarters through Q4 2022 saw a ~10% reduction at prices between ~$16 and ~$25 while H1 2023 saw the stake doubled at prices between ~$15 and ~$20. There was a further ~11% increase in the last quarter. This quarter saw the position sold down by ~66% at prices between ~$8 and ~$12. The stock is now at $7.14.
Telephone & Data Systems (TDS) and WESCO International (WCC): These small (less than ~1.5% of the portfolio each) stakes were reduced during the quarter.
Bath & Body Works (BBWI): The large (top five) ~9% of the portfolio stake in BBWI was established during Q3 2022 at prices between ~$26 and ~$41. There was a ~60% stake increase in the next quarter at prices between ~$31 and ~$44. The stock currently trades at ~$45.10.
Note: They have a ~6% ownership stake in the business.
Global Blue (GB): The very small 0.60% stake in GB was kept steady this quarter.
The spreadsheet below highlights changes to Loeb’s 13F stock holdings in Q4 2023:
Dan Loeb - Third Point Portfolio - Q4 2023 13F Report Q/Q Comparison (John Vincent (author))
Source: John Vincent. Data constructed from Third Point’s 13F filings for Q3 2023 and Q4 2023.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.