According to the most recent 13F for billionaire Dan Loeb's Third Point, the hedge fund has decreased its holdings from 40 to 38 while increasing its portfolio value from $13.32 billion to $14.35 billion in the last quarter. The 13F filing, submitted to the U.S. Securities and Exchange Commission ahead of the August 15th deadline, also indicates that Third Point's portfolio remains highly concentrated, with just three holdings accounting for about a third of the entire portfolio value. Below, we'll take a closer look at some of the positions in the Third Point portfolio that shifted last quarter.
New Positions in NXP Semiconductors, PayPal, and More
Loeb took on several new stakes in Q2 of this year, but two of them in particular stand out. NXP Semiconductors NV (NXPI) and PayPal Holdings Inc. (PYPL) are both large positions that the fund entered in the last few months. NXPI accounted for about 8% of Third Point's portfolio as of the end of June; the fund bought the stock at prices ranging between $92 and $120 per share, and the stock currently trades for just above $87 as of this writing. Loeb has predicted that PYPL will be worth $125 in the next year and a half. Currently, PYPL is trading for just over $85 per share.
Third Point also entered smaller positions in Visa Inc. (V), Dell Technologies (DVMT), Far Point Acquisition (FPAC), Campbell Soup (CPB) and Deere & Co. (DE), among others. Each of the named stocks above represents less than 1.5% of Third Point's portfolio as of the end of Q2.
Alphabet Inc. (GOOGL) had been a sizable position in Loeb's portfolio. Established in the first quarter of 2016 at prices as high as $765 per share, GOOGL formerly occupied about 4.5% of Third Point's 13F portfolio assets. Loeb had moved back and forth with GOOGL, buying and selling to trim or supplement this position for several quarters since that initial purchase. In Q2 of this year, though, he finally eliminated the position, selling off the remaining shares at prices as high as $1,175. Since that time, GOOGL has continued to increase in price, with the stock currently trading above $1,200.
Loeb also exited his positions in Time Warner Inc. (TWX), formerly accounting for about 4% of Third Point's portfolio, NYSE owner Intercontinental Exchange (ICE), Mohawk Industries (MHK), and others. He joined Berkshire Hathaway's Warren Buffett in disposing of his position in Monsanto (MON).
Loeb's hedge fund has generated annualized returns of 15.4% since its December 1996 inception, compared with 8.1% for the S&P 500 Index. 13Fs are necessarily backward-looking, meaning that any of the information presented in the filing could be out of date by the time it becomes public.