More than two decades ago, Dan Loeb founded Third Point. Today, he serves as its CEO and the hedge fund has over $7 billion in managed 13F securities. In addition, Loeb is perceived as a transparent fund manager and publishes a quarterly investor letter to the public.
In the most recent investor letter, Loeb disclosed that his flagship fund has returned an annualized gain of 14.3% since its inception in 1995. However, Q1 proved to be challenging, as the flagship fund lost 11.5%.
During the quarter, Third Point’s best-performing equity positions were Shell (NYSE:SHEL), EQT (NYSE:EQT) and Zendesk (NYSE:ZEN). In contrast, its worst-performing positions were SentinelOne (NYSE:S), Upstart (NASDAQ:UPST) and Rivian (NASDAQ:RIVN).
Loeb has taken a rather cautious stance with his portfolio positioning in light of macroeconomic factors. In the fourth quarter, the fund managed 13F securities worth $14.32 billion. As of Q1, that figure has been cut nearly in half to $7.68 billion.
With that in mind, let’s take a look at Third Point’s top three positions.
Dan Loeb Is Betting Big on These 3 Stocks
Despite being one of the worst performers during Q1, SentinelOne remains Third Point’s largest position. The fund owns 24.8 million shares of the cybersecurity company, which makes up 11.61% of its portfolio.
It should be noted the hedge fund first invested in the company privately in 2015, leading its Series B funding round. At the time, Third Point also took a seat on the company’s board. Now, it appears Loeb may be slowly trimming his position. During Q1, the fund sold 1.5 million shares, reducing its position by 5%.
Third Point’s second-largest position is PG&E (NYSE:PCG). PCG stock makes up 10.98% of Loeb’s portfolio. However, the fund sold off 7.7 million shares, reducing its position by 10%. Energy stocks have fared well this year as high inflation persists. The company has returned 2% year-to-date (YTD) beating out the S&P 500’s YTD loss of 13%.
Finally, Danaher Corporation (NYSE:DHR) is the fund’s third-largest position. Loeb owns 2.49 million shares, which makes up 9.69% of his fund’s portfolio. Like his top two positions, Loeb sold off 410,000 shares of DHR stock, reducing his position by 14%. Danaher operates as a diversified conglomerate that designs and manufactures products for the medical, industrial and commercial industries. Shares of Danaher have declined by about 14% YTD.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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