Loeb’s Mystery Stake In Chesapeake Exposed, As He Fills Up on Apple

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Dan Loeb’s hedge fund, Third Point, has disclosed filings in its form 13F, and it shows that he has placed a major emphasis on insurance companies. The filing shows that Loeb’s fund owned 2.25 million shares in American International Group, Inc. (NYSE:AIG), which equals about $76 million.


Other than American International Group, Inc. (NYSE:AIG), Loeb also purchased 900,000 shares of Aetna Inc. (NYSE:AET), 1.7 million shares of Cigna, 475,000 shares of Humana, 1.8 million shares of United health, and 850,000 shares of WellPoint, Inc. (NYSE:WLP), and shares of Plains Exploration & Production Company (NYSE:PXP)

All of these buys come during the same quarter, in which Obama’s healthcare plan was ruled to be constitutional by the Supreme Court.

Other than insurance, Loeb also added new counters in Cabot Oil & Gas Corporation (NYSE:COG), Enphase Energy Inc (NASDAQ:ENPH), Coca-Cola Enterprises Inc (NYSE:CCE), Informatica Corporation (NASDAQ:INFA), News Corp (NASDAQ:NWSA), Thoratec Corporation (NASDAQ:THOR) and Westlake Chemical Corporation (NYSE:WLK).

A major note in holdings that were added to, includes Apple Inc. (NASDAQ:AAPL). The mobile giant is one of Loeb’s most powerful investments, and promises to yield good returns as iPhone and iPad sales increase worldwide. Loeb has detailed his bullish case for Apple Inc. (NASDAQ:AAPL) and bought in at a much lower price than the current price.

Third Point did exit some counters last quarter, and the ones of note are Goldman Sachs Group, Inc. (NYSE:GS), Wells Fargo & Company (NYSE:WFC), Abercrombie & Fitch Co. (NYSE:ANF), and a few pharmaceuticals. Goldman Sachs and Wells Fargo are among the banks who took hits in one or more of the recent scandals to rock the banking industry. He specifically reduced stakes in COF and United Technologies Corporation (NYSE:UTX).

Loeb sold out of  Marvell Technology Group Ltd. (NASDAQ:MRVL), which colleague David Einhorn likes, and MHS.

Yahoo! Inc. (NASDAQ:YHOO), possibly Loeb’s most noted holding, has remained steady. Loeb’s involvement with the selection of Marissa Mayer as the new CEO of Yahoo has been no secret, as we have reported here on ValueWalk. Loeb is the largest shareholder of Yahoo and sits on the board as well. Speaking of Mayer, Loeb sold his stake in Google Inc (NASDAQ:GOOG). We wonder if his new relationship with the former Google Inc (NASDAQ:GOOG) employee had anything to do with this.

Loeb’s hedge fund, and Yahoo! Inc. (NASDAQ:YHOO) are both rumored to be invloved in an investigation, as we have reported. This pertains to the purchase of the shares, which Loeb made some months ago, before the new CEO was brought in. Loeb also mad a sizeable purchase of shares shortly after Mayers’ appointment in a show of faith for her leadership capabilities.

We also now know the mysterious stake in Chesapeake Energy Corporation (NYSE:CHK). It is 5 million bonds of the troubled natural gas company. According to the 13F Loeb owns  5 million notes of Chesapeake Energy Corporation (NYSE:CHK) NOTE 2.250%12/1. We looked up the CUSIP and here is the data on the debt;  2.25% Contingent Convertible Senior Notes Due 2038.

Loeb has also bought some puts on J.C. Penney Company, Inc. (NYSE:JCP), which his colleague Bill Ackman is the largest shareholder of.

Disclosure: Long United Health and Humana

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