Key Takeaways
- • Third Point decreased its total holdings from 40 to 38 positions while increasing portfolio value from $13.32 billion to $14.35 billion in Q2 2018, reflecting strategic reallocation toward higher-conviction bets.
- • Dan Loeb's hedge fund completely exited its Alphabet position, which had represented approximately 4.5% of the portfolio since its initial purchase in Q1 2016 at prices as high as $765 per share.
- • Third Point trimmed positions in Facebook and Amazon while maintaining a concentrated portfolio structure, with just three holdings accounting for approximately one-third of total portfolio value.
- • Loeb established significant new positions in NXP Semiconductors (8% of portfolio, purchased at $92–$120 per share) and PayPal (with a 18-month price target of $125 per share), alongside smaller stakes in Visa, Dell Technologies, Campbell Soup, and Deere & Co.
- • The portfolio shift signals Loeb's rotation away from large-cap tech exposure toward semiconductor and fintech opportunities, while maintaining conviction in select positions despite market headwinds.
Summary
Third Point, the New York-based hedge fund managed by billionaire Dan Loeb, filed its most recent 13F with the U.S. Securities and Exchange Commission ahead of the August 15, 2018 deadline, revealing a strategically concentrated portfolio restructuring during Q2 2018. The fund's total holdings decreased from 40 to 38 positions; however, the portfolio's aggregate value increased from $13.32 billion to $14.35 billion, indicating that Loeb prioritized reducing lower-conviction positions while deploying capital into higher-quality opportunities.
The most notable change in Third Point's portfolio was the complete exit from Alphabet Inc. (GOOGL), a position Loeb had established in Q1 2016 at prices as high as $765 per share. Alphabet had represented approximately 4.5% of Third Point's 13F portfolio at its peak. Despite periodic trimming and supplementing over several quarters, Loeb ultimately decided to liquidate the entire position, reflecting a broader rotation away from large-cap technology exposure. Additionally, Third Point reduced positions in Facebook and Amazon, signaling selective de-risking within the mega-cap tech sector.
Offsetting these exits, Loeb initiated several meaningful new positions in Q2 2018. NXP Semiconductors (NXPI) emerged as a substantial conviction play, representing approximately 8% of the portfolio following purchases at prices ranging from $92 to $120 per share. PayPal Holdings (PYPL) also received significant capital allocation, with Loeb publicly targeting a price of $125 per share within an 18-month timeframe. Smaller positions were added in Visa, Dell Technologies, Campbell Soup, and Deere & Co., each representing less than 1.5% of portfolio assets at quarter-end.
The portfolio remained highly concentrated, with the top three holdings accounting for roughly one-third of Third Point's total value. This structure underscores Loeb's conviction-driven investment approach and preference for maintaining meaningful exposure to core positions while selectively pruning underperforming or fully-valued large-cap technology holdings in favor of semiconductor and fintech opportunities positioned to benefit from structural secular trends.
The most notable change in Third Point's portfolio was the complete exit from Alphabet Inc. (GOOGL), a position Loeb had established in Q1 2016 at prices as high as $765 per share. Alphabet had represented approximately 4.5% of Third Point's 13F portfolio at its peak. Despite periodic trimming and supplementing over several quarters, Loeb ultimately decided to liquidate the entire position, reflecting a broader rotation away from large-cap technology exposure. Additionally, Third Point reduced positions in Facebook and Amazon, signaling selective de-risking within the mega-cap tech sector.
Offsetting these exits, Loeb initiated several meaningful new positions in Q2 2018. NXP Semiconductors (NXPI) emerged as a substantial conviction play, representing approximately 8% of the portfolio following purchases at prices ranging from $92 to $120 per share. PayPal Holdings (PYPL) also received significant capital allocation, with Loeb publicly targeting a price of $125 per share within an 18-month timeframe. Smaller positions were added in Visa, Dell Technologies, Campbell Soup, and Deere & Co., each representing less than 1.5% of portfolio assets at quarter-end.
The portfolio remained highly concentrated, with the top three holdings accounting for roughly one-third of Third Point's total value. This structure underscores Loeb's conviction-driven investment approach and preference for maintaining meaningful exposure to core positions while selectively pruning underperforming or fully-valued large-cap technology holdings in favor of semiconductor and fintech opportunities positioned to benefit from structural secular trends.
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