Dan Loeb’s Third Point hedge fund made significant moves in the technology sector during the first quarter of the year, signaling a high level of confidence in further gains. The fund opened a stake valued at over $450 million in Alphabet, while also increasing positions in Amazon and Meta Platforms. These strategic investments reflect Loeb’s belief in the potential for growth within the megacap tech companies.
Loeb’s new position in Alphabet, with approximately 3 million shares, became his seventh-largest holding by the end of the first quarter. The stock saw an 8% increase during that period and has continued to climb by more than 15% since April. Furthermore, he raised his stake in Amazon by over 20%, making it his second-largest holding at around $920 million. Amazon, which recently joined the Dow Jones Industrial Average, saw a nearly 19% gain in the first quarter.
In addition to Alphabet and Amazon, Loeb also increased his position in Facebook parent Meta by less than 7%. This move made Meta the fund’s fifth-largest holding at approximately $600 million. While Meta experienced a significant 37% surge in the first quarter, it has seen a slight dip of 2% in the second quarter. Despite this, strong performances from these tech giants can potentially benefit Loeb’s investment portfolio.
Following reports of underperformance, the positive outlook on tech investments from Third Point can be seen as a good sign for big investors. Despite his confidence in the tech sector, Loeb chose to take profits on Microsoft by reducing his stake by more than 12%. However, Microsoft remains one of his top three holdings. While the stock has remained relatively flat in the second quarter, it saw a 12% increase in the first three months of the year.
Apart from tech investments, Third Point also diversified its portfolio by opening stakes in companies like Goldman Sachs and Cinemark during the quarter. On the other hand, Loeb decided to exit positions in United States Steel, DuPont de Nemours, and McKesson. These strategic moves reflect Loeb’s commitment to adapting his investment strategy to market conditions and potential growth opportunities.
Overall, Dan Loeb’s strategic moves in the tech sector and other industries demonstrate a calculated approach to investing. By focusing on companies with strong growth potential and making adjustments to his portfolio as needed, Loeb continues to navigate the ever-changing landscape of the market with precision and foresight.