The final few months of 2017 were big for Dan Loeb, the billionaire leader of Third Point. For Loeb's hedge fund, it was a time of buying; the fund increased the total number of positions in its portfolio from 37 to 44 during the fourth quarter. At the same time, the portfolio value increased from $11.9 billion to $13.86 billion, a sizable leap for a period of just three months, according to Seeking Alpha.
In the process, Third Point bought into Alphabet and Time Warner and it dropped Bank of America and T-Mobile US. Loeb's firm has outpaced many of its competitors, in spite of caustic conditions for hedge funds more broadly.
Added Netflix, Aetna and Intercontinental Exchange
Among the most notable purchases for Third Point in the last quarter were Intercontinental Exchange (ICE), Netflix Inc. (NFLX), and Aetna Inc. (AET). Each of these positions accounts for just under 3% of the total 13F portfolio value. Loeb initiated positions in all three of these companies in the fourth quarter of 2017.
Loeb also increased some of his established holdings in the past few months. Alphabet Inc. (GOOG) constitutes one of the top five holdings in Third Point's portfolio, representing about 5.25% of the total portfolio value. It was established in the early part of 2016 and has fluctuated since then. Although Loeb sold off shares in GOOG in several recent quarters, he more than doubled his Google holdings in the last quarter of 2017.
Another notable increase in the fourth quarter was for Time Warner Inc. (TWX). TWX accounts for about 4% of Loeb's total portfolio. Like Google, Loeb also more than doubled his position in TWX in the final months of 2017.
Dumped Bank of America and T-Mobile
Two notable exited positions for Q4 2017 were Bank of America (BAC) and T-Mobile US (TMUS). Loeb trimmed some of his BAC holdings in Q3 before completely eliminating the position last quarter, while prices were between $25 and $30 per share. He bought T-Mobile US in the first quarter of 2017 before selling his remaining shares in the final quarter.
Heading into 2018, Third Point's 13F portfolio was highly concentrated in just a few top stocks. The top three positions as of December 31, 2017 were Baxter International (BAX), DowDuPont (DWDP), and Alibaba Group Holding (BABA). All together, these three positions make up a whopping 32% of the total portfolio value. (See also: Billionaire David Einhorn Sold GM and Aercap, Bought Brighthouse: 13F.)
While the information contained in Loeb's 13F for last quarter is useful as a means of comparing Third Point's financial decisions against other money managers, it's important to keep in mind that the 13F information is likely out of date at this time. For that reason, investors are cautioned against making investment decisions based on this information. (See also: Daniel Loeb's Success Story: Net Worth, Education & Top Quotes.)