Susanne B
This article is part of a series that provides an ongoing analysis of changes made to Dan Loeb's 13F stock portfolio on a quarterly basis. It is based on Third Point regulatory standards. Form 13F Submitted on 08/14/2024. Visit our Follow-up to Dan Loeb's Third Point Portfolio Series to get an idea of their investment philosophy and our last update for fund movements during the first quarter of 2024.
This quarter, the value of Loeb's 13F portfolio increased from $7.85 billion to $8.74 billion. The 13F portfolio is highly concentrated, with the top three holdings accounting for approximately 30% of the entire portfolio. The number of holdings increased from 40 to 44. 36 of the holdings are significantly large (more than 0.5% of the portfolio each) and are the focus of this article. The top five individual stock positions are Amazon.com, PG&E, Microsoft, Meta Platforms, and Danaher.
Third Point returned 1.8% in the second quarter of 2024, compared to 4.3% for the S&P 500 Index. Annualized returns since inception in December 1996 stand at 13.1%, compared to 9.4% for the S&P 500 Index. In addition to the partners' interests, Third Point also invests in SiriusPoint's free float (New York Stock Exchange:SPNT) and capital from London-listed closed-end fund Third Point (OTCPK:TPNTF). To learn more about Dan Loeb's Third Point, check out his letters to shareholders on his site. For a primer on activism, see “Deep Value: Why Activist Investors and Other Opponents Fight for Control of Losing Corporations“.
Note 1: They have a significant investment portfolio in private companies through their venture firm, Point Ventures' third company.
Note 2: Large equity investments not in the 13F filing include UBS Group AG (UBS), Shell plc (SHEL), Glencore plc (OTCPK:GLNCY), Sony (SONY), EssilorLuxottica (OTCPK:ESLOY), and Nestlé (OTCPK:NSRGY). UBS’s stake was built after the Credit Suisse transaction was announced. Shell’s stake was built over the three quarters to Q1 2022, while Glencore plc’s position was established during Q1 2022. SONY is a $1.5 billion investment made in June 2019 when the stock was trading at around $50 per share. It is currently at ~$96. ESLOY’s investment was made in early 2019 when the stock was trading at ~$62.50 per share. It is currently trading at ~$118. The NSRGY position is from 2017, and the stock has gone from ~$75 to ~$107 now.
New bets:
Apple Inc. (AAPL):AAPL represents a fairly large position of 4.70% of the portfolio purchased this quarter at prices between ~$165 and ~$216 and the stock is currently trading above that range at ~$223.
Amphenol Corporation (APH):The 2.16% APH stake was established this quarter at prices between ~$55 and ~$70, and is now at ~$62.
KB Home Page (KBH):KBH represents a small 1.69% stake in the portfolio purchased this quarter at prices between ~$60 and ~$74. The stock is currently trading above that range at ~$81.
Roper Technologies (ROP)ROP's 1.55% stake was established this quarter at prices between ~$510 and ~$563 and the stock is now at ~$552.
ASML Holding (ASML), CRH plc (CRH), Hess Corporation (HES), Live Nation (LYV) and MSCI Inc. (MSCI)These small stakes (less than ~1.5% of the portfolio each) were established during the quarter.
Participation provisions:
Goldman Sachs (GS), Marvell Technology (MRVL), S&P Global (SPGI) and WESCO International (WCC):These small positions (less than ~2% of the portfolio each) were liquidated during the quarter.
Bet Increases:
Taiwan Semiconductors (TSM):TSM's stake of ~4% was established during Q2 2023 at prices between ~$82 and ~$107. The stake was reduced by 28% during Q3 2023 at prices between ~$84 and ~$105. This was followed by a one-third reduction in the following quarter at prices between ~$85 and ~$105. This quarter saw an increase in the stake to ~72% at prices between ~$127 and ~$180. The stock is currently trading at ~$161.
Corpay, Inc. (CPAY):CPAY is 2.33% of the portfolio position established during Q4 2023 at prices between ~$222 and ~$283 and the stock is currently trading at ~$314. There was a ~6% increase in the last quarter. This quarter saw a further ~18% increase at prices between ~$250 and ~$316.
Apollo Global Management (APO):APO's ~2% stake saw a ~90% share increase this quarter at prices between ~$107 and ~$119 and the stock is currently trading at ~$111.
Uber Technologies (UBER):The 1.75% stake in UBER increased by 51% during Q3 2023 at prices between $42.11 and $49.46. In the following quarter, the position was sold at a price between ~$41 and ~$63. The stake was reduced by another 50% during the last quarter at prices between $57.58 and $81.39. This quarter, the stake increased by ~320% at prices between ~$64 and ~$77. The stock is now at ~$72.
Cinemark (CNK) Shares:CNK represents 1.73% of the portfolio, which was purchased last quarter at prices between ~$13.50 and ~$19. This quarter has seen a ~40% increase in the stake at prices between ~$16.47 and ~$21.62. The stock is currently trading well above its purchase price range at ~$27.25.
Decreased participation:
PG&E Corporation (PCG):PCG is currently the second largest 13F holding at ~11% of the portfolio. The position arose as a result of participating in a PIPE (the terms for the bankruptcy exit financing in 2020 called for a purchase price of up to $10.50 per share). The stock is currently trading at $19.94. There was a ~7% haircut this quarter.
Microsoft Corporation (MSFT):~8% of MSFT's position in the portfolio (top three) was purchased during Q4 2022 at prices between ~$214 and ~$257, and is now at ~$409. There was a ~45% stake increase during Q2 2023 at prices between ~$275 and ~$348. That was followed by a similar increase in the next quarter at prices between ~$312 and ~$358. Q4 2023 saw a ~9% cut. That was followed by a ~12% reduction in the last quarter. This quarter also saw a similar cut. They are reaping profits.
Meta Platforms (META):META is a large position (top 5) of 6.35% of the portfolio established during Q3 2023 at prices between ~$283 and ~$326. The stock is currently trading at ~$512. There was a ~10% increase over the past two quarters, while this quarter saw a similar reduction.
Bath and Body Works (BBWI):The rather large 5.35% portfolio stake in BBWI was established during Q3 2022 at prices between ~$26 and ~$41. There was a ~60% stake increase in the following quarter at prices between ~$31 and ~$44. The stock is currently trading at $30.49. There was a ~7% haircut last quarter and a similar haircut this quarter.
Note: They have an ownership stake of approximately 5.2% in the business.
Alphabet Inc. (GOOG):4.13% of the portfolio's position in GOOG was established during the last quarter at prices between ~$133 and ~$155. There was a one-third reduction this quarter at prices between ~$152 and ~$187. The stock is currently trading at ~$159.
Jacobs Solutions (J):The 2.79% position in Jacobs Solutions increased by 29% during Q3 2023 at prices between ~$119 and ~$137. The stock is currently trading at ~$147. There was a marginal cut this quarter.
Ferguson Enterprises (FERG):FERG is a 2.14% position in the portfolio 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 ~$202. There was a ~15% cut in Q4 2023, followed by a ~11% cut this quarter. They are starting to take profits.
International Flavours and Fragrances (IFF):IFF is a 1.42% stake in the portfolio established during Q4 2022 at prices between ~$85 and ~$108. There was a ~15% stake increase over the two quarters to Q2 2023, while a ~17% cut occurred in Q4 2023. The stake was reduced by 32% in the last quarter at prices between $72.86 and $85.99. The stock is now at ~$104. There was a ~7% cut this quarter.
Telephone and data systems (TDS):TDS is a very small 0.54% stake that is down about 22% this quarter.
Maintained stable:
Amazon.com (AMZN):AMZN is now the largest 13F position at 11.28% of the portfolio. It was established during Q2 2023 at prices between ~$98 and ~$130 and the stock is currently trading at ~$176. There was a ~14% stake increase during Q3 2023 at prices between ~$126 and ~$145. The following quarter saw a ~10% reduction. The position increased by 21% in the last quarter at prices between ~$145 and ~$180.
Danaher Corporation (DHR):The rather large 5.86% stake in DHR 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 ~20% was sold in H1 2020 at prices between $129 and $177. H1 2022 saw another similar reduction at prices between ~$237 and ~$316. It is currently trading at ~$264.
Vistra Corporation (VST):VST's 4.40% portfolio stake saw an increase of ~28% during Q4 2023 at prices between ~$31.40 and ~$39. The stock is currently trading well above that range at ~$76. There was a reduction of ~3% over the past quarter.
American International Group (AIG):AIG is a 2.93% stake in the portfolio established during Q4 2022 at prices between ~$48 and ~$64. There was a ~42% sale during Q1 2023 at prices between ~$47 and ~$65. In Q4 2023, the stake increased by ~17%. The stock is currently trading at ~$76.
Intercontinental Exchange (ICE):The 1.57% stake in ICE was established during Q2 2023 at prices between ~$104 and ~$113. There was a ~30% stake increase in the following quarter at prices between ~$107 and ~$118. In Q4 2023, ~70% was sold at prices between ~$105 and ~$129. The position increased by 43% in the last quarter at prices between ~$124 and ~$139. It is now at ~$161.
Advance Auto Parts (AAP), EQT Corp. (EQT), Global Blue (GB) and Verizon Communications (VZ)These small holdings (less than ~1.5% of the portfolio each) remained stable this quarter.
The following spreadsheet highlights changes in Loeb's 13F stock holdings in Q2 2024:
Dan Loeb – Third Point Portfolio – Q2 2024 13F Report Quarterly Comparison (John Vincent (author))
Editor's Note: This article discusses one or more securities that are not listed on a major U.S. exchange. Please be aware of the risks associated with these securities.