Billionaire Dan Loeb Reiterates Bullish Thesis on Baxter, Holds on to Allergan Stake & Other Market Commentaries

#2. Allergan plc (NYSE:AGN)

– Shares owned by Third Point LLC as of March 31: 5.00 Million

– Value of Third Point LLC’s holding as of March 31: $1.34 Billion

Third Point LLC had exactly 5 million shares of Allergan plc (NYSE:AGN) in its portfolio at the end of the first quarter, which were valued at $1.34 billion. The Dublin-domiciled Botox maker was the largest detractor in Third Point’s portfolio this year, primarily due to the collapse of the planned $160 billion tie-up with U.S. pharma company Pfizer Inc. (NYSE:PFE). The multi-billion-dollar inversion deal was pulled after the U.S. Treasury presented new rules to curb companies from moving their headquarters overseas to benefit from lower taxes. Although the New York-based hedge fund firm reduced its more concentrated long investments in health care, the firm continues to hold its Allergan stake. Israel-based Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) anticipates to complete the $40.5 billion acquisition of Allergan’s generic-drug business next week after federal regulators approved the deal. Allergan shares are 16% in the red thus far in 2016 despite having gained an impressive 14% in the past month alone. Andy Redleaf’s Whitebox Advisors cut its stake in Allergan plc (NYSE:AGN) by 27% during the June quarter to 50,849 shares.

#3. Dow Chemical Co (NYSE:DOW)

– Shares owned by Third Point LLC as of March 31: 25.00 Million

– Value of Third Point LLC’s holding as of March 31: $1.27 Billion

Dow Chemical Co (NYSE:DOW) was the third-largest equity position in Dan Loeb’s pool of holdings at the end of the January-to-March quarter, making up 11.7% of the billionaire’s portfolio. The 25 million-share position was valued at $1.27 billion at the end of the first quarter. The planned all-stock merger of U.S. chemical giants Dow Chemical and E. I. Du Pont De Nemours and Co (NYSE:DD) remains on track to close by the end of 2016, as the companies recently offered concessions in a bid to alleviate EU antitrust concerns about the proposed mega-merger. Just recently, shareholders of both Dow Chemical and DuPont approved plans to merge and later break up into three companies. The soon-to-be created behemoth intends to achieve $3 billion in cost synergies before splitting into three independent companies: a pure-play agriculture company, a pure-play material science company, and an innovation-driven specialty products company. Dow Chemical shares have advanced 4% thus far in 2016. Ray Carroll’s Breton Hill Capital owns 45,601 shares of Dow Chemical Co (NYSE:DOW) as of June 30.