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Long-Term Returns of Dan Loeb’s 5 Activist Targets

In this article, we discuss long-term returns of Dan Loeb’s 5 activist targets. If you want to see more stocks in this selection, check out Long-Term Returns of Dan Loeb’s Activist Targets.

5. SentinelOne, Inc. (NYSE:S) 

Stock Return: -60%
Activist Investment: 2021

SentinelOne, Inc. (NYSE:S) is a cyber-security company that delivers artificial intelligence-powered autonomous threat prevention, detection, and response capabilities across all endpoints.

Third Point LLC entered a 10.34% stake in the cyber security firm in June 2021

The investment came amid Loeb’s confidence about SentinelOne, Inc. (NYSE:S)’s growth potential and ability to disrupt the cyber security industry. Nevertheless, the investment has turned sour, with the stock declining by 60% over the past two years.

Follow Sprint Corp (NYSE:S)

4. Cano Health, Inc. (NYSE:CANO)

Stock Return: – 76%
Activist Investment: 2022

Cano Health, Inc. (NYSE:CANO) specializes in offering primary care medical services to members in the United States and Puerto Rico. It operates senior care failures and primary care clinics in the US. In 2022, Third Point took a stake in the company urging the board to explore a sale, citing market dislikes of companies that went public via SPACs.

Activist investor Loeb had also raised concerns about Cano Health, Inc. (NYSE:CANO)’s executive compensation, financial discipline, investor communication, and board composition. Consequently, he proposed four directors’ nominees for election at an annual meeting.

Third Point liquidated all its holdings in the stock before year-end, having seen the value of its stake in the stock decline by more than 76%.

Follow Cano Health Inc. (NYSE:CANO)

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

Stock Return: 14.12%
Activist Investment: 2022

Bath & Body Works, Inc. (NYSE:BBWI) is a specialty home fragrance body care and soap retailer. Third Point LLC declared a 6.02% stake in the company in late 2022 as it also pushed for a refresh of the board and reduced management compensation in favor of shareholders’ returns.

In its 13D filing, Third Point questioned the adequacy of governance policies at the company while also criticizing excessive management compensation. Early 2023, Loeb sent a letter to the board affirming his plan to nominate a set of director candidates for election. He also urged the board to hire a permanent CEO with a proven track record.

Bath & Body Works, Inc. (NYSE:BBWI) price has increased by 14.12% since Loeb started waging a proxy battle with the company.

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

2. Ventyx Biosciences, Inc. (NASDAQ:VTYX) 

Stock Return: 66%
Activist Investment: 2022

Ventyx Biosciences, Inc. (NASDAQ:VTYX) is a clinical-stage biopharmaceutical company that develops small-molecule product candidates for various inflammatory diseases. In December of 2022, Third Point took a position on the company as Loeb remained optimistic about its pipeline and potential to create medicine for patients with autoimmune diseases.

Given that the hedge fund purchased the shares at an average price of about $18.95, the value of its stake has increased by about 66%.

Follow Ventyx Biosciences Inc. (NASDAQ:VTYX)

1. Salesforce, Inc. (NYSE:CRM)

Stock Return: 25%
Activist Investment: 2023

Salesforce, Inc. (NYSE:CRM) is a company that provides cloud-based software and services for managing customer relationships, online commerce, data analysis, and social media. It was established in 1999 and is a leader in enterprise cloud computing. Third Point confirmed building a position in the company in early 2023

Loeb invested in Salesforce, Inc. (NYSE:CRM), believing that the stock was undervalued, given the strong market position and opportunities to improve profitability and capital structure. He is pushing for a say in the company’s strategic direction following the controversial acquisition of Slack. His investment in the company is already paying up, as it is up by 25%.

Follow Ventyx Biosciences Inc. (NASDAQ:VTYX)

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 Jim Chanos’ 10 Short Positions in 2023 and 10 Jim Cramer Stock Picks this Week.

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:

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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