Morning Brief: Third Point Makes Big Bet on Alibaba

November 13, 2017   Stephen Taub

Alibaba Group Holding is now the hedge fund’s second largest U.S. long position.

Dan Loeb’s Third Point boosted its stake in Alibaba Group Holding by nearly 50 percent in the third quarter to 6.6 million shares. The Chinese internet giant — one of the market’s hot stocks this year — is now the multi-strategy firm’s second largest U.S. long position, accounting for about 9.6 percent of its U.S. stock portfolio. The purchase of Alibaba shares is one of the biggest changes Third Point made to its stock portfolio in the third quarter, according to its latest 13F filing.

The hedge fund also disclosed that DowDuPont is now its third largest long. Dow Chemical and DuPont completed their merger on September 1, becoming DowDuPont. Third Point initially disclosed a position in Dow Chemical in its fourth quarter 2013 letter. While Third Point established 11 new positions in the third quarter of 2017, DowDuPont was the only one to become a significant part of its portfolio. The firm also liquidated five smallish positions.

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Shares of Snap, a favorite among hedge funds and short sellers, rebounded November 10, rising about 3.1 percent to $12.76.

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Shares of activist favorite General Electric Co. jumped 2.5 percent to close at $20.49 on November 10. It is a major position of Trian Fund Management. Last month GE said it elected Trian chief investment officer Ed Garden to its board of directors.

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Bill Ackman’s Pershing Square Holdings lost 1.5 percent in the first week of November, extending its loss for the year to 4.7 percent, according to its weekly published update.


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