In this article, we discuss the 10 stocks Dan Loeb’s Third Point is selling based on Q2 holdings of the fund. If you want to skip our detailed analysis of Loeb’s history, investment philosophy, and hedge fund performance, go directly to Dan Loeb’s Third Point is selling these 5 stocks.
Born on December 18, 1961, Daniel Seth Loeb is an American investor, philanthropist and hedge fund manager. Loeb is the chief executive officer of the New York-based hedge fund Third Point. Loeb earned his bachelor’s degree in economics from Columbia University in 1983.
Loeb founded Third Point in 1995 with $3.3 million in seed money raised from family and friends. The hedge fund is an employee-owned and SEC-registered investment advisor with more than $4 billion in assets under management.
The top ten holdings of Third Point presently account for 46.6% of the portfolio. Dan Loeb has made new purchases in 34 stocks and reduced holdings in 33 stocks in the second quarter of 2021. Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) were among the top holdings in Third Point’s investment portfolio at the end of the second quarter of 2021.
Dan Loeb is bullish on Amazon.com, Inc. (NASDAQ:AMZN), according to his hedge fund’s disclosed holdings data as of the end of the second quarter of 2021. The fund increased its holding in Amazon.com, Inc. (NASDAQ:AMZN) by 28% in the second quarter, ending the period with 145,000 shares.
Alphabet Inc. (NASDAQ:GOOG) is another large-cap stock in Third Point’s portfolio, in which the fund has reduced its stake by 5%. The hedge fund owns 200,000 shares of the company worth $488.36 million.
The world’s largest software company, Microsoft Corporation (NASDAQ:MSFT), is also a vital holding of the fund. The hedge fund chaired by Dan Loeb holds 1.60 million shares of the company worth $433.44 million.
Dan Loeb of Third Point
Why should we pay attention to Loeb’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this background in mind, let’s start our list of 10 stocks Dan Loeb’s Third Point is selling. We used Loeb’s 13F portfolio for Q2 2021 for this analysis. Loeb’s fund sold its entire stake in these stocks in Q2. Most of these are SPACs, many of which the fund exited after they completed their mergers and deals.
Dan Loeb’s Third Point is Selling These Stocks
10. Khosla Ventures Acquisition Co. (NASDAQ:KVSA)
Number of Hedge Fund Holders: N/A
Khosla Ventures Acquisition Co. (NASDAQ:KVSA) is a California-based aerospace and defense company. It helps entrepreneurs develop breakthrough technologies by providing venture capital and strategic guidance. Khosla Ventures Acquisition Co. (NASDAQ:KVSA) is placed tenth on the list of 10 stocks Dan Loeb’s Third Point is selling.
In June, Valo Health and Khosla Ventures Acquisition Co. (NASDAQ:KVSA) announced merging plans. According to the agreement, the combined company has a pro forma market value of $2.8 billion. Weiss Asset Management is the company’s leading shareholder, with 1.59 million shares worth $15.70 million.
9. Jaws Mustang Acquisition Corporation (NYSE:JWSM)
Number of Hedge Fund Holders: N/A
Jaws Mustang Acquisition Corporation (NYSE:JWSM) is placed ninth on the list of 10 stocks Dan Loeb’s Third Point is selling. It was formed to carry out a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar commercial combination with one or more companies.
Jaws Mustang Acquisition Corporation (NYSE:JWSM) generated $900 million by selling 90 million shares at $10 each. The firm sold 15 million units more than expected. Barry Sternlicht is the Chairman of the firm. The biggest stakeholder of Jaws Mustang Acquisition Corporation (NYSE:JWSM) is Aristeia Capital, with 5.05 million shares worth $50.81 million.
8. ION Acquisition Corp 2 Ltd. (NYSE:IACB)
Number of Hedge Fund Holders: N/A
ION Acquisition Corp 2 Ltd. (NYSE:IACB) is an Israeli company that intends to buy one or more businesses and assets through a merger, capital stock exchange, asset acquisition, stock purchase, or reorganization. It ranks eighth on the list of 10 stocks Dan Loeb’s Third Point is selling.
Out of the hedge funds being tracked by Insider Monkey, Boston-based hedge fund Weiss Asset Management is a leading shareholder in ION Acquisition Corp 2 Ltd. (NYSE:IACB) with 1.65 million shares worth more than $16.29 million.
7. IAA, Inc. (NYSE:IAA)
Number of Hedge Fund Holders: 33
IAA, Inc. (NYSE:IAA) is a digital marketplace that connects buyers and sellers of vehicles. It assists a variety of sellers in promoting and selling complete loss, damaged, and low-value automobiles. The company is placed seventh on the list of 10 stocks Dan Loeb’s Third Point is selling.
Hedge fund managers decreased their IAA, Inc. (NYSE:IAA) net holdings. As of the end of the second quarter, 33 hedge funds in Insider Monkey’s database held stakes in IAA, Inc. (NYSE:IAA), compared to 35 funds in the previous quarter.
6. HH&L Acquisition Co. (NYSE:HHLA)
Number of Hedge Fund Holders: N/A
HH&L Acquisition Co. (NYSE:HHLA) ranks sixth on the list of 10 stocks Dan Loeb’s Third Point is selling. It is a blank check company that was incorporated in 2020 to target the healthcare sector in Asia.
The first public offering of 36 million units of HH&L Acquisition Co. (NYSE:HHLA) was priced at $10.00 per share.
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Disclosure: None. Dan Loeb’s Third Point is Selling These 10 Stocks is originally published on Insider Monkey.
