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Billionaire Dan Loeb’s Portfolio: Top 5 Stock Picks

In this article, we will take a look at billionaire Dan Loeb’s portfolio: top 5 stock picks. To know more about the top stocks in Loeb’s portfolio, go directly to Billionaire Dan Loeb’s Portfolio: Top 12 Stock Picks.

5. Bath & Body Works, Inc. (NYSE:BBWI)

Third Point’s Stake Value: $468.13 Million
Percent of Portfolio: 7.1%
Number of Hedge Fund Holders: 49

Bath & Body Works, Inc. (NYSE:BBWI) is a specialty retailer of home fragrance, body care, and soaps. The company commercialize its products through the retail store and e-commerce sites. 

While Bath & Body Works, Inc. (NYSE:BBWI) is down by about 23% for the year, it offers an enticing 2.45% dividend yield, ideal for generating passive income. Third Point opened a position in Bath & Body Works, Inc. (NYSE:BBWI) in Q3 2022 at the height of the bear run. Third Point held stakes worth $468.13 million in the company in Q3 2023, accounting for 7.1% of the portfolio. 

Follow Bath & Body Works Inc. (NYSE:BBWI)

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4. Amazon.com, Inc. (NASDAQ:AMZN)

Third Point’s Stake Value: $594.92 Million
Percent of Portfolio: 9.02%
Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is an online retailer that connects merchants and consumers worldwide.

At the end of September 2023, Third Point had a stake in Amazon.com, Inc. (NASDAQ:AMZN) worth $594.92 million. According to securities filings, it owned 4.68 million shares of Amazon.com, Inc. (NASDAQ:AMZN), which comprised 9.02% of its portfolio. The stock is up by about 28% since Loeb started investing in the second quarter, affirming its status as one of Dan Loeb’s top stock picks. 

Polen Global Growth shared its views on Amazon.com, Inc. (NASDAQ:AMZN) in its investor letter for Q3 2023:

“Amazon continues to showcase it’s place as one of the most competitively advantaged companies in the world. The company has made significant progress in managing costs and better leveraging existing capacity, driving a strong recovery in its profitability. We think there’s additional room for improvement.

AWS growth seems to be stabilizing even while management continues to work with clients to optimize their infrastructure spend. Roughly 90% of global IT spending remains on premise. We believe this will eventually flip, with most IT spending ultimately moving to the cloud over time. We think AWS will be a significant beneficiary of this transition.

Further, our investment case on company profitability driven by AWS and advertising continues to unfold, delivering nearly $8 billion in free cash flow over the trailing twelve months and a net margin of 5%. We expect both to move higher with the mix shift of more profitable businesses growing fastest continuing to take effect.

At Amazon’s current price, we believe the company is well positioned to deliver a mid-teens or higher total shareholder return for our clients over the next five plus years without a Herculean effort from the business. It simply needs to continue executing on current businesses and growing into the capacity it built during and immediately after the pandemic.”

Follow Amazon Com Inc (NASDAQ:AMZN)

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3. Danaher Corporation (NYSE:DHR)

Third Point’s Stake Value: $607.85 Million
Percent of Portfolio: 9.21%
Number of Hedge Fund Holders: 103

According to recent filings, Third Point held 2.76 million shares of Danaher Corporation (NYSE:DHR) as of the end of the third quarter of 2023, valued at $607.85 million, accounting for 9.21% of the portfolio.

Baron Health Care Fund said the following about Danaher Corporation (NYSE:DHR) in its Q3 2023 investor letter:

“We added to Danaher Corporation (NYSE:DHR), which recently completed the spinoff of its non-life sciences businesses to become a pure-play life sciences tools company. Although near-term trends in the bioprocessing market remain challenging, we like the long-term growth drivers in this business and think Danaher is well positioned.”

Follow Danaher Corp (NYSE:DHR)

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2. Microsoft Corporation (NASDAQ:MSFT)

Third Point’s Stake Value: $702.54 Million
Percent of Portfolio: 10.65%
Number of Hedge Fund Holders: 306

Microsoft Corporation (NASDAQ:MSFT) is another major technology firm renowned for its suite of software solutions that include Office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft Viva, and Microsoft 365 Copilot. Microsoft Corporation (NASDAQ:MSFT) also operates in the cloud computing segment and gaming industry through the Xbox console.

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1. PG&E Corporation (NYSE:PCG)

Third Point’s Stake Value: $917.15 Million
Percent of Portfolio: 13.91%
Number of Hedge Fund Holders: 49

PG&E Corporation (NYSE:PCG) provides electricity and natural gas to customers in California. It has pipelines and storage facilities for natural gas. PG&E Corporation (NYSE:PCG) also generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. 

Follow Pg&E Corp (NYSE:PCG)

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Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 15 Stocks under $50 to Buy and Hold Forever and Billionaire Daniel Sundheim’s D1 Capital Portfolio: Top 12 Stock Picks.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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