So what are Dan Loeb’s latest plays?

Billionaire investor Dan Loeb’s hedge fund, Third Point LLC disclosed recently that it has sold off its investments in American Express (AXP). Third Point owned 1.5 million shares in AXP

Billionaire investor Dan Loeb’s hedge fund, Third Point LLC disclosed recently that it has sold off its investments in American Express (AXP)

 

Back in November 2018, Dan Loeb’s Third Point disclosed a new position in AXP claiming that the market underappreciates the strategic pivot of the company.

Dan Loeb believed back in late 2018 that the company’s stocks would be trading above $135 over the next 18 months. At the time of Dan Loeb’s Third Point disclosure in the company, the stock was at $108.06.

At the time of writing this piece, AXP was changing hands at $126.32, near its 52 week high.

The credit card giant reported mixed first-quarter with its earnings per share coming in at $2.01, beating market expectations, on revenue of $10.36 billion.

Dan Loeb’s latest plays, one of which to exit AXP means that the billionaire investor has booked a nice profit of approximately 20% on his investment in that trade

So why didn’t Dan Loeb’s Third Point ride out its AXP investment for a little longer?

American Express’s revenue fell short of expectations and perhaps that is why Dan Loeb’s Third Point exited his investment in American Express with a tidy profit.

“Dan Loeb’s latest plays, one of which to exit AXP means that the billionaire investor has booked a nice profit of approximately 20% on his investment in that trade”

 

Exiting from Constellation Brands Inc. (STZ) is another one of Dan Loeb’s latest plays

Third Point owned 1.05 million shares in STZ.

Constellation Brands Inc., a Fortune 500 company, is an international producer and marketer of beer, wine, and spirits. The company has more than 100 brands in its portfolio.

That’s not a bad move either bearing in mind millennials’ weak sense of brand loyalty to alcohol brands, according to a Nielsen report.

Dan Loeb’s Third Point stake in Netflix increased to 500,000 shares as of June 30 from 400,000 shares as of March 31

So Dan Loeb’s Third Point has exited the fund’s investment in Constellation Brands believing that the stock could be overpriced.

Dan Loeb’s latest plays which entailed another exit was in Celgene Corp. CELG

The fund sold off the 1.75 million shareholdings in the company during the quarter.

On the buy-side, Dan Loeb’s latest plays make equally interesting reading

Dan Loeb’s Third Point stake in Netflix increased to 500,000 shares as of June 30 from 400,000 shares as of March 31.

Third Point’s largest investment by market capitalization remains hospital products company

However, Dan Loeb’s Third Point reduced its stake in Baxter International Inc. BAX, +3.01%,the fund’s stake was decreased to 23 million shares from 28 million shares. Moreover, its stake in Campbell Soup Co. CPB, +0.36% fell to 18.5 million shares from 21 million shares.

So that’s Dan Loeb’s latest plays summed up in nutshell.

TRADING SOFTWARE

Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.

Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.

A year later and the activist investor Dan Loeb targets Sony

Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.