The Morning Brief: Surging Third Point Grows More Bullish

April 05, 2017   Stephen Taub


Dan Loeb is cranking up his fund’s gross and net exposures to coincide with his increasingly sunny outlook on the post-Trump markets.

Third Point’s Dan Loeb continues to grow more bullish by the month. The multistrategy manager best known for his shareholder activism boosted his overall and net exposure to the stock market for the third straight month. Entering April, Third Point boosted its gross exposure to 102 percent and its net exposure to 71.4 percent. This compares with 86 percent and 57.2 percent, respectively, just two months earlier.

The Third Point Overseas fund gained 0.8 percent in March and is up 5.9 percent for the year. This compares with the 6.1 percent gain posted by the Standard & Poor’s 500 stock index in the first quarter.

Loeb has made it clear he has become more bullish on the market since Donald Trump was elected president. In March, his long-short equity book returned 0.9 percent, driven primarily by gains on the long side. The credit book was off 0.2 percent, all from the long side.

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Tiger Global Management boosted its stake in Apollo Global Management by about 10 million shares, to more than 23 million shares. As a result, the Tiger Seed now owns 12.5 percent of the private equity firm headed by Leon Black. It did not own any shares in Apollo at year-end.

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Highfields Capital Management disclosed it owns 11.5 million shares of Silver Run Acquisition Corporation II, or 11.11 percent of the total outstanding. Yesterday we reported that Adage Capital Management took a 5.5 percent position in the energy-focused special purpose entity sponsored by an affiliate of Riverstone Holdings. It completed its initial public offering on March 29.

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Point72 Asset Management disclosed it owns more than 2.3 million shares of Match Group, or 5 percent of the owner of several online dating websites. At year-end, Steve Cohen’s well-diversified family office did not report a position in the company.


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