Dan Loeb founded Third Point in 1995 and is known for his blunt and direct public letters to company executives such as when he wrote an open letter to Yahoo board of directors last December stating (among other things) that "We are disturbed but not surprised by this mismanagement given the history of strategic bungling by Yahoo Board Chairman Roy Bostock and Founder Jerry Yang". Ultimately, he is a value investor but clearly one that's not afraid to take a more activist approach.
As we point out in our latest Hedge Fund Report, Dan Loeb's big (and public) bet remains Yahoo (NASDAQ:YHOO) which was only added two quarters ago (after a small position in '10). Loeb took advantage of some weakness in Q1 to add 14M shares. There are several brand new positions in the top 10 including Delphi Auto (NYSE:DLPH) (which represents 10% of total reported longs) and Apple (which is the most popular hedge fund stock):
Depending on how quickly Loeb ramped up his position in DLPH, it could be working out very well:
His 5% position in Apple (NASDAQ:AAPL) is faring better however:
The full list of new and dropped positions is below. Several top 10 positions from last quarter were dropped including Plains Exploration (NYSE:PXP) (which was a new position last quarter) and Gilead (which was only introduced in Q3 2011):
Third Point was clearly very active in Q1 in terms of shuffling names in and out of their portfolio and the big bet remains in YHOO. Time will tell if Dan's other big bets pay off.