Dan Loeb’s Newest Investments
December 9, 2015 Leave a comment
There’s confidence. There’s boldness. And then there’s Dan Loeb, hedge fund extraordinaire and founder of Third Point LLC. He has built a reputation for himself as a daunting money manager and, simply put, “one of the best investors of our generation.” Today, with over three decades of experience in financial markets, the billionaire activist investor oversees about $17 billion in assets.
While closing out 17 other positions, the third quarter was a successful one for Loeb as he added four new holdings to his US stock portfolio.
Time Warner Cable
With stock prices increasing 31% over the past year and trades at 27x earnings ($185.81), Loeb purchased 1,300,000 shares of Time Warner Cable for an average of $186.80 per share. Time Warner Cable is the second largest cable company in the U.S., and with an operating margin staying steady at 20%, there haven’t been any signs of dipping below this level since 2010.
Avago Technologies is a designer, creator, and supplier of analog semiconductor devices for wireless communication, wired infrastructure, and automotive electronics. With stock rising 34% in the past year, Loeb bought 1,650,000 shares of the company, having closed out a prior holding in the company back in Q4 of 2014. This traded for an average price of $126.33 during the quarter.
Loeb’s third purchase during the quarter included 2,250,000 shares (for an average of $87.90 per share) in Danaher, a global science and technology innovator that designs and manufactures professional, medical, and industrial products. GuruFocus.com, a site that tracks the stock buys, sells, and commentaries of guru investors, gave Danaher’s business predictability an exceptional rating of 4.5 out of 5 stars.
The Kraft Heinz Co.
Making Kraft Heinz its 6th largest position and following the footsteps of Warren Buffet, Loeb’s largest purchase of the quarter was acquiring 8,250,000 shares for an average price of $75.49 per share. Warren Buffet also reported adding to his stake during the quarter, now holding almost 27% of the company. After recently completing a merger of Kraft Foods Group and H.J. Heinz Holding Corporation in June, the company reported net sales increased by 136% in its third quarter results.