We recently published a list of Billionaire Dan Loeb’s Top Stock Picks. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other Billionaire Dan Loeb’s top stock picks.
Dan Loeb is an American billionaire, activist investor, and hedge fund manager best known as the founder and CEO of Third Point, a New York-based hedge fund. Known for his bold activist strategies, sharp letters to corporate boards, and remarkable investment acumen, Loeb has become one of the most influential figures in the hedge fund industry. His ability to identify undervalued companies, implement changes to unlock value, and deliver strong returns for investors has solidified his reputation as a financial powerhouse. He was born in 1961 in California. Coming from an affluent family, his father was a partner at a prominent law firm, and his mother was a historian. Loeb attended the University of California, Berkeley, where he initially studied at the business school before transferring to the College of Letters and Science. He graduated with a degree in economics in 1983.
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Loeb’s early career in finance saw him working at Warburg Pincus in private equity and later at Citigroup in risk arbitrage. These roles provided him with the foundation to understand markets, value creation, and capital allocation. In 1995, Loeb launched Third Point LLC with $3.3 million in capital, including $300,000 of his own money. The firm initially operated as a scrappy startup but quickly grew in prominence thanks to Loeb’s exceptional returns and his willingness to engage in public activist campaigns. As of the end of the third quarter of 2024, Third Point manages over $7.4 billion in 13F securities. Third Point has delivered double-digit annualized returns since its inception, with Loeb’s keen investment instincts driving its success. Loeb takes large, concentrated positions in companies he believes can be turned around.
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For this article, we selected stocks by combing through the 13F portfolio of Third Point at the end of the third quarter of 2024. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Dan Loeb of Third Point
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Third Point’s Stake: $216.7 million
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. There are several compelling factors that make this company a strong investment. Firstly, as per the reports for the third quarter of 2024, the company generated nearly $27 billion in operating cash flow, which reflects strong financial health. And, the company returned over $29 billion to shareholders, demonstrating the company’s commitment to maximizing shareholder value. Secondly, the company’s commitment to a $100 million pledge, including a first-of-its-kind education hub for HBCUs and an Apple Developer Academy in Detroit, reflects a long-term strategy for talent development. This would drive future innovation, enhance brand loyalty, and support sustainable growth. Moreover, Apple Inc. (NASDAQ:AAPL) commits to protecting the planet by focusing on recycled and renewable materials, clean electricity, and low-carbon shipping. This vision for 2030 would bring net emissions to zero across the company’s entire carbon footprint.
Overall, AAPL ranks 12th on our list of Billionaire Dan Loeb’s top stock picks. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
