Third Point, a hedge fund managed by activist investor Daniel Loeb reported that its equity portfolio has a market value of more than $11 billion based on its 13F filing with the Securities and Exchange Commission (SEC).
During the quarter, Third Point acquired a new position in 13 companies and sold out its entire stake in 7 equities. The hedge fund also increased its stockholdings in 13 companies and reduces its stake in 14 stocks.
Third Point new stock positions
Third Point acquired positions in American International Group, Citigroup, EMC Corporation, Phillips 66 and Delta Air Lines. These are the five major new stockholding of the hedge during the quarter.
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Third Point purchased 3.5 million shares of American International Group worth approximately 196 million during the quarter. The stock is its 20th largest stockholding based on its equity portfolio.
The shares of AIG climbed close $54.99 per share, up by almost 2%. Over the past year, the insurance giant gained more than 12% in stock value as it traded between $48 and $56.79 per share.
The insurance giant reported its net income was $655 million or $0.46 per share in the fourth quarter of 2014, down from $2 billion or $1.34 per share in the same quarter a year ago. The company said its book value per share increased 13% to $77.69.
Third Point bought 5 million shares of Citigroup for approximately $270.55 million, its 11th largest stockholding.
The board of directors of the bank appointed Peter Blair Henry as new independent director effective July 1, 2015. He is an international economist specializing in emerging markets. He is also the Dean of Leonard N. Stern School of Business at the New York University.
Matt O’Connor, an analyst at Deutsche Bank equity research recently upgraded his stock rating for Citigroup to Buy. He suggested that the bank will buy back shares worth $1 billion per quarter this year. The stock price of Citigroup rose by nearly 1% to $51.69 per share on Monday. The bank gained more than 4% in stock value over the past year.
Third Point 3.85 million shares of Delta Air Lines worth approximately $189.38 million. The stock closed $44.76 a share today. Over the past 52-weeks, the stock traded between $30.12 and $51.06 per share. Although Delta Air Lines’ stock price dropped, the company still gained more than 42% over the past year.
Market observers believed that the decline is a buying opportunity for long-term investors. Delta Air Lines recorded better-than-expected financial performance last year. The company achieved over $4.5 billion in pre-tax profit last year, an increase of nearly $1.9 billion year-over-year.
Third Point acquired 7 million shares of EMC Corporation worth around $208 million, its 16th largest stockholding. The shares of the company rose more than 1% to $28.30 per share. Over the past year, the company gained almost 12% in stock value.
Macquarie analyst Rajesh Ghai raised its stock rating for EMC Corporation to Outperform and maintained his $30 price target for the stock. The analyst believed that the company would benefit from the reacceleration in storage spending.
The hedge fund acquired 5 million shares of Phillips 66 worth approximately $358.5 million. The stock is the seventh largest stockholding of Third Point based on its equity portfolio.
Phillips 66 completed the sale of its two natural gas pipeline systems to its affiliate, Phillips 66 Partners for $1 billion in cash and stock on Monday. Earlier this month, the company declared a quarterly dividend of $0.50 per share payable on March 2 to shareholders of record as of the close of business on February 17.
Third Point sold out positions
During the quarter, Third Point sold out its entire stake in Bed Bath and Beyond, Avago technologies, EQT Corporation, FedEx Corporation, YPF SA among others.
Third Point recorded 5.2% total returns in 2014. The hedge fund’s returns were less lucrative because of the negative impacts of its investments in Sothebys and Banco Espirito Santo.