Billionaire Dan Loeb Reveals His Top Stock Picks; Allergan plc (AGN) Disappoints

#2. Allergan plc (NYSE:AGN)

– Number of 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

Dan Loeb and his team trimmed Third Point’s exposure to Allergan plc (NYSE:AGN) by 400,000 shares or roughly 7% during the March quarter to 5.00 million shares, which were valued at $1.34 billion at the end of March. The 5.00 million-share stake would have been worth $1.14 billion at the time of writing, as the termination of the planned $160 billion inversion deal between Allergan and Pfizer Inc. (NYSE:PFE) put significant pressure on Allergan shares. Third Point believes the termination of the Pfizer-Allergan deal, which “dealt a further blow to many other investors” in addition to the “Valeant debacle”, partially caused “one of the most catastrophic periods of hedge fund performance” in the fund’s history. Specialty-drug giant Allergan will complete the sale of its generics business to Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) in the foreseeable future for $40 billion. The share price of Allergan’s stock is down 26% since the start of 2016. John Paulson’s Paulson & Co. owns 5.42 million shares of Allergan plc (NYSE:AGN) as of the end of the March quarter.

#1. Baxter International Inc. (NYSE:BAX)

– Number of shares owned by Third Point LLC as of March 31: 53.85 Million

– Value of Third Point LLC’s holding as of March 31: $2.21 Billion

Baxter International Inc. (NYSE:BAX) is the largest position in Third Point’s equity portfolio as of the end of the first quarter, accounting for 20.4% of the fund’s entire portfolio. The New York-based asset manager held its Baxter stake unchanged during the first three months of 2016 at 53.85 million shares, which were worth $2.21 billion on March 31. The shares of the medical devices maker have advanced nearly 16% since the beginning of 2016. Baxter International recorded total net sales of $2.38 billion for the first quarter, down from $2.40 billion reported a year ago. The company’s top-line figure was primarily impacted by foreign exchange headwinds, whose impact decreased the net sales figure by 5%. The nine brokerage firms that issued price targets on Baxter have an average 12-month target of $46.8, which implies an upside of at least 5%. Richard S. Pzena’s Pzena Investment Management held 4.08 million shares of Baxter International Inc. (NYSE:BAX) in its portfolio at the end of March.

Disclosure: None