Dan Loeb’s Third Point recently filed its Schedule 13F form for the third quarter of 2014 with the SEC. In this document, the fund disclosed its long equity positions as of September 30. Following 13 new stock purchases, the closing of another 13 positions and an increase in another 10 of them, its equity portfolio is worth about $8.7 billion. In this article, I would like to take a look, specifically, at Mr. Loeb’s fund’s top three new stakes for the third quarter: Alibaba Group Holding Ltd (NYSE:BABA), eBay Inc (NASDAQ:EBAY) and Bed Bath & Beyond Inc. (NASDAQ:BBBY).
Third Point is a New York-based investment adviser founded in 1995 by Dan Loeb. The firm focuses on event-driven, value-oriented investing; it seeks to identify situations where a catalyst will unlock value. As many investors know, Mr. Loeb’s style is activist and outspoken. He made $150 Million in 2005, $200 Million in 2006, and $270 Million in 2007. Third Point’s flagship fund returned 41.7% in 2010.
Thid Point placed its largest new bet for the third quarter (like many other funds) on Alibaba Group Holding Ltd (NYSE:BABA), a $283.91 billion market cap online and mobile commerce company that went public en September, and has generated much discussion since. Over the quarter the firm bought 7.2 million shares, worth approximately $639.7 million. This stake accounts for 7.34% of the fund’s total equity portfolio, and makes it one of the largest institutional investors in the company.
Other major funds betting on Alibaba Group Holding Ltd (NYSE:BABA) are Andreas Halvorsen’s Viking Global, which disclosed ownership of 11.38 million shares of the company by the end of the third quarter; Julian Robertson’s Tiger Management, which owns about 1.21 million shares; and George Soros’ Soros Fund Management, which holds 4.4 million shares of the Internet company as of the end of the third quarter.
Second in line is eBay Inc (NASDAQ:EBAY), a $67.68 billion market cap online marketplaces and payments company. During the July-September period, Third Point acquired 4.5 million shares, worth about $254.8 million.
Also bullish on eBay Inc (NASDAQ:EBAY) is Carl Icahn, who owns 45.8 million shares of the company. Barry Rosenstein’s JANA Partners also seems quite confident about eBay’s future. With 13.06 million shares, valued at $739.77 million, eBay is amongst the fund’s top picks for the third quarter. Same goes for Tiger Management, which purchased 496,400 shares during the quarter.
Finally, there’s Bed Bath & Beyond Inc. (NASDAQ:BBBY), a $13.2 billion market cap chain of specialty retail stores that saw Third Point acquire 3.0 million shares, worth about $197.4 million.
Chuck Royce’s Royce & Associates also bought some Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock. After the purchase of 287,130 shares, the fund owns 3.07 million shares of the company.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned