Curious about what Third Point Capital’s Daniel Loeb was up to in Q4? We’ve got insights into the investment movements of one of Wall Street’s leading hedge fund managers.
Daniel Loeb had a busy quarter, his portfolio now consisting of 45 total allocations as opposed to 34 in Q3. And of those, 16 are new, accounting for a total 32.44% of his fund.
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Loeb’s biggest buy was Dow Chemical (NYSE:DOW), of which the billionaire picked up seven million shares. The company, a constituent of the iBillionaire Index (NYSE:BILLION), now composes 5.91% of his portfolio. News of the purchase went public in January.
Known for buying into troubled companies and imposing his own strategies, Loeb has been vocal about his opinions on operations spin-offs and business model modifications for Dow. The firm’s management isn’t in line with the billionaire’s plan, but with the stakes so high, discussions are sure to continue.
While Dow is one of the largest companies in its sector, it has struggled on the market. Its price has increased +45% in the past decade, while the S&P Chemicals Index is up +199%. Both George Soros and Ray Dalio have stakes in Dow as well.
Daniel Loeb increased his positions in 12 companies, which now account for 29.55% of his fund. The increases include iBillionaire Index bets Dollar General (NYSE:DG), FedEx (NYSE:FDX), Google (NASDAQ:GOOG) and newcomer Anadarko (NYSE: APC).
And so far, it looks as though the investor’s decision to up his holdings are paying off. Since the start of Q4, Dollar General is up +1.74%, FedEx +18.03% and Google +37.81%. Anadarko has declined -10.39% but rebounded +5.05% YTD.
Loeb scaled back his exposure in nine firms, including some portfolio veterans. Most surprising were his sales of Yahoo (NASDAQ:YHOO) and American International Group (NYSE:AIG) – both part of the iBillionaire Index.
The Yahoo case has been covered extensively, Loeb having pushed for Marissa Mayer’s hiring to help turn the company around. Since bringing her onboard, the investor has downsized his position significantly. Yahoo now composes 5.58% of his fund, as opposed to 12.16% in Q3. Chase Coleman, Thomas Steyer and George Soros continue to bet on this one.
Loeb also backed off of AIG, reducing his allocation from 12.16% of his portfolio to 6.60%. While it is currently his largest holding, Loeb has been scaling back in recent quarters for quite some time. In fact, of the five billionaires tracked by iBillionaire with a position in AIG (Bruce Berkowitz, Leon Cooperman, David Tepper, Richard Chilton and Loeb), only Chilton kept his allocation steady.
Finally, Loeb unloaded six companies from his holdings, including iBillionaire Index constituent Twenty-First Century Fox (NYSE:FOXA). He also sold off CF Industries Holdings (NYSE:CF), which was eliminated from the index as well.