Dan Loeb (Third Point LLC)

[winston]

Dan Loeb’s Investment Process

by Joshua M Brown

Recognizing when you're right - and for the right reasons - is a harder thing for investors than you would probably think. But knowing you're right is the key to knowing when to increase your bet. After all, what good is nailing the thesis but blowing the execution with too little at stake to move the needle?

Finally, once you've already been right, there comes the age-old struggle with knowing when to stay with the trend versus taking the gain and moving on.

Everyone struggles with this and I don't know which is more painful to one's psyche: Scalping a quick profit only to watch an investment soar or hanging on too long and watching a winner become a breakeven or a loser.

Source: The Reformed Broker

http://www.thereformedbroker.com/2013/0 ... t-process/

[winston]

‘Smart Money’ Stocks: Dan Loeb (Third Point LLC)

I pity the poor CEOs that find themselves in Dan Loeb’s crosshairs. He is known for writing scathing — and very public — letters to the boards of companies he targets, and he doesn’t mince words. They tend to read like a list of demands.

But while Loeb might be blunt, I can’t say I argue with him … or his returns. Over the past 20 years, Loeb has generated returns of 19.6% per year, more than double the return of the S&P 500.

So, what’s Loeb up to?

Interestingly, he made two major portfolio moves last quarter that were both essentially plays on China. He sold out of Alibaba Group Holdings Ltd (NYSE:BABA) and initiated a new position in Yum Brands Inc (NYSE:YUM).

YUM, of course, is the parent company of KFC, Taco Bell and other iconic American fast food restaurants. But as the American fast food market has been saturated for years, China has emerged as YUM’s most strategic market. YUM gets the overwhelming majority of its revenues from emerging markets with China being the largest.

YUM is not cheap in a strict value sense. It trades for 41 times trailing earnings and 23 times expected forward earnings. But if you believe in the long-term emergence of China’s middle class — and in Loeb’s abilities as a stock picker — then its shares might be worth a stab.

Source: Investor Place

[winston]

Stocks Are 'Silly' Cheap, According to Legend

By Dr. Steve Sjuggerud

"These [recent] selloffs have created silly prices," contrarian hedge-fund manager Dan Loeb said on Friday during a conference call.

"We've actually increased our [buying]," he said.

Loeb is bold… He thinks for himself. And he's willing to invest when nobody else is.

His style has paid off for his investors…

If you invested $100,000 with Loeb in 1996, it would be worth more than $1.7 million today – giving him one of the best long-term track records out there right now.

Today, he thinks the fear and concerns that people have about the economy are overblown…

"We see a lot of people that are on alert," he explained, "but there haven't really been any signs of recession from either the economic data, the surveys, or our individual conversations with companies."

This is a critical thought as an investor…

You see, I've learned that the best time to invest is when reality is different from perception.

The perception right now, as Loeb says, is that times are bad. The reality is that things are actually better than most people think.

1. Life's "important stuff" (food, shelter, and gas) is affordable.
2. Most people have jobs (the unemployment rate is 4.9%).
3. Interest rates are near record lows.

The point is, the news is surprisingly better than people think…

Most people disagree with me… but this disagreement creates our opportunity.

Investor panic reached a crescendo in early February. I agree with Loeb… It reached an "overblown" level, and when we finally break out of the fear, I think stocks could do extremely well.

So where's Loeb putting his money to work? Not in oil companies…

Energy stocks face the risks of high debt levels and now the threat of equity offerings to shore up the balance sheets.
Instead, he likes health care, industrial, and consumer stocks.

Loeb is one of the world's best investors. And he's using the recent investor panic as a buying opportunity. I will join him, once I'm confident we have an uptrend in place.

Are you bold enough and contrarian enough to pull the trigger?

Think about it!

Source: Daily Wealth

[winston]

The Smart Money: Daniel Loeb

Source: Brionv via Wikimedia (Modified)
Plays to Focus On: Alphabet, Baxalta, Lowe’s, Danaher, Targa Resources, Williams Companies, EMC

Activist investor Daniel Loeb is one of the best investors of his generation. He’s also what I would call the “Anti-Warren Buffett.” While Buffett is known for buying companies with management teams he admires, Loeb intentionally targets companies that he sees and being managed poorly and then agitates for change. Few things will make a board of directors feel true dread like getting a sharply worded open letter from Mr. Loeb.

Loeb had a busy quarter, starting new positions in Alphabet (GOOGL), Baxalta (BXLT), Lowe’s (LOW), Danaher (DHR), Targa Resources (TRGP) and Williams Companies (WMB), among several others.

Interestingly, he also started a position in Seth Klarman’s largest holding, EMC. The fact that two of the smartest men on Wall Street see value here is something worth noting.

I also find it interesting that Loeb, like Tepper, is seeing value in the midstream MLP space. His positions in Williams and Targa Resources are only about 1% of the portfolio, but a quarter ago it was rare to see MLPs in a smart money portfolio at all.

Source: Investor Place

[winston]

Hedge fund billionaire Dan Loeb bought a bunch of Facebook

by Julia La Roche

Third Point LLC, the hedge fund led by Daniel Loeb, snapped up a large stake in Facebook during the second quarter.

According to the fund’s 13-F filing, Third Point bought 3,750,000 shares of Facebook (FB), a position valued at $428,550,000 at the end of the quarter. The social network is among the fund’s top long equity holdings.

Other new positions taken during the second quarter include Charter Communications (CHTR), Monsanto (MON), Sherwin-Williams (SHW), and Shire (SHPG).

Third Point exited its position in Amgen (AMGN). The fund also [b]cut back its stakes in Alphabet (GOOGL) and Dow Chemical (DOW)[/b].

Hedge funds are only required to disclose their long stock holdings in 13-Fs. They do not show their short positions. What’s more is these filings come out 45 days after the end of each quarter.

Source: Yahoo Finance

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[winston]

Third Point Investors (OTC: TPNTF)

This publicly traded entity exists exclusively to invest in Dan Loeb's Third Point Offshore hedge fund.

The current net asset value of the slice of Loeb's hedge fund that Third Point Investors owns is $30.74 per share.

Meanwhile, the trading price for Third Point Investors is $27.50.

During the financial crisis in 2008, Third Point Investors traded at a 40% discount to the value of its underlying assets.

Last spring during the COVID-19 crash, the discount blew out to 30%.

Source: Wealthy Retirement