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Billionaire Dan Loeb Adds Facebook, Monsanto to Third Point’s Portfolio in Q2

Billionaire Dan Loeb is the founder of New York-based Third Point LLC, an asset management firm with $17 billion assets under management. The well-known money management firm predominantly employs an event-driven, value-oriented investing approach. Mr. Loeb, the firm’s Chief Executive Officer, has around three decades of experience in financial markets, particularly in special situation equities, distressed debt and risk arbitrage.

During the first quarter of 2016, viewed by Mr. Loeb as “one of the most catastrophic periods of hedge fund performance that we can remember since the inception of this fund,” the New York-based asset manager was down 2.3% versus the 1.3% gain for the S&P 500 Index. The multi-billion-dollar investment firm returned 4.6% in the second quarter, bringing the firm’s return for the first half of 2016 into positive territory at 2.2%. Despite the disappointing performance delivered thus far in 2016, Third Point LLC generated an annualized return of 15.8% since 1996, doubling the 7.3% return delivered by the S&P 500 gauge over the same time span. As billionaire Dan Loeb and his team already compiled and filed their quarterly 13F for the second quarter, this article will list a set of five new additions made to their portfolio during the June quarter.

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– Shares Owned by Third Point LLC (as of June 30): 950,000
– Value of Third Point LLC’s Holding (as of June 30): $174.88 Million

Third Point LLC had a new stake of 950,000 American Depository Shares of Shire PLC (ADR) (NASDAQ:SHPG) in its portfolio at the end of the second quarter of 2016, valued at $174.88 million on June 30. The new position accounted for 1.7% of the asset manager’s entire portfolio. In early June, the Irish-headquarter global specialty biopharmaceutical company completed the $32.4 billion-acquisition of Baxalta, a global innovative biopharmaceutical leader focused on creating treatments in areas such as hematology, immunology and oncology. The deal created the world’s biggest rare-disease drugmaker. At closing, Baxalta shareholders received $18 in cash and 0.1482 of Shire ADSs for each Baxalta share. As Third Point had 6.00 million shares of Baxalta in its portfolio at the end of the first quarter, the aforementioned Shire stake predominantly consists of ADSs received as part of the Shire-Baxalta deal. Shire’s ADS is around 3% in the red year-to-date. Ken Griffin’s Citadel Advisors LLC owns nearly 388,000 ADSs of Shire PLC (ADR) (NASDAQ:SHPG) as of the end of the second quarter.

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