Top 5 Stocks to Sell Now According to Billionaire Dan Loeb

In this article, we present the list of the top 5 stocks to sell now according to billionaire Dan Loeb. If you want to read our comprehensive analysis of  Third Point Management’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stocks to Sell Now According to Billionaire Dan Loeb.

5. Paysafe Limited (NYSE:PSFE)

Number of Hedge Fund Shareholders: 32

Dan Loeb’s Third Point was one of several hedge funds that dumped Paysafe Limited (NYSE:PSFE) during Q4, as hedge fund ownership of the fintech company fell by 24% at the tail end of a rather dismal year for the company and its shares. It was the second straight quarter that saw a steep drop in hedge fund ownership.

Loeb sold off 39.47 million shares of Paysafe Limited (NYSE:PSFE), closing the position he had owned since the company went public at the end of Q1. Early investor enthusiasm for the stock quickly waned through the year with each successive quarterly financial report the company released, as its revenue growth disappointed and its operating losses grew.

Loeb shared some of the details of why he unloaded his Paysafe Limited (NYSE:PSFE) investment in Third Point’s Q4 investor letter, stating the company failed to execute on the plans it had laid out in its IPO. His comments can be read below:

“The top five losers for the quarter (includes) Paysafe Ltd. The fourth quarter marked the beginning of a market rotation from growth to value that accelerated into January of 2022. One of the most stinging losses for the quarter was our investment in Paysafe Ltd, which was down 49% in Q4 and 74% for the year due to its failure to execute the plan articulated in its 2020 IPO (via a SPAC transaction, in which we participated.) We exited the position in its entirety following the company’s Q3 earnings report, and the shares have languished since then.”