This week, Daniel Loeb’s New York Based Hedge Fund Third Point LLC reported its trades that occurred during the quarter.
The fund currently has 61 positions according to the latest SEC filing.
The largest 10 positions by currently held in the fund by size with (%) weights are:
- CL / Colgate-Palmolive Company – 14.66%
- PCG / PG&E Corporation – 14.32%
- DHR / Danaher Corporation – 12.60%
- S / SentinelOne, Inc. – 8.77%
- UNH / UnitedHealth Group Inc – 6.11%
- BBWI / Bath & Body Works, Inc – 4.79%
- TWTR / Twitter Inc – 4.36%
- OVV / Ovintiv Inc – 3.32%
- EQT / EQT Corporation – 2.39%
- DIS / Walt Disney Co – 2.39%
During the quarter, the fund’s primary purchases were weighted towards consumer discretionary and retail sectors which typically have defensive consistent cash flows.
On the sales side, the fund reduced exposures to the energy sector taking profits from the stellar gains made over the course of 2022.
More specifically, the top purchase and sales can be found in the lists provided below.
Top fund increases during the quarter:
The largest position increase was in American consumer products company Colgate Palmolive (CL) with the fund purchasing 11.55 million new shares worth $811.39 million. The purchase increased the total weight in the fund from 10.9% to 14.7% and is the largest position. Colgate reported Q3 earnings at the end of October with revenue and EPS results in-line with consensus. The company expects to continue to deliver marginal earnings growth of 1-4% over the year.
The second largest purchase was of 8.13 million shares in American soap and goods retailer Bath & Body Works (BBWI) worth $262.20 million. This was an initial position in the company by the fund. The purchase was BBWI’s initial 4.79% portfolio weight. At the beginning of november, the firm appointed Gina Boswell as the new incoming CEO to begin in the role from the 1st of December. The stock is scheduled to reported third quarter results on Wednesday with the street expecting revenue to decline about 7.5% over the year.
Third Point made a marginal 5.5 million share investment into Twitter (TWTR) worth $241.12 million. The fund purchased the stock prior to its delisting on the 8th of November and would have made a marginal return.
Department store chain TJX Companies (TJX) was fourth on the list with 1.75 million share purchases worth $108.71 million. The purchase the funds initial position with a 1.96% position. TJX is scheduled to report third quarter earnings on Wednesday with the street expecting sales to come in at the top end of the $12.1-12.3 billion guidance range.
On the energy front, the fund made a $98.51 million purchase in natural explorer Range Resources (RRC), initiating a 1.78% portfolio weight. At the last result on the 24th of October, Range beat sales and profit forecasts by the street, benefiting from higher energy prices.
Other new purchases by the fund included; Ferguson (FERG) with a 1.72% weight, Take-Two Interactive (TTWO) with a 0.98% weight and Comstock Resources (CRK) at a 0.94% weight.
Top fund decreases during the quarter:
The largest sale during the quarter was of 3.25 million shares in energy company EQT Corporation (EQT) worth $132.44 million. The reduction decreased the funds portfolio weight by more than half reducing 3.73% down to 2.39%. The fund reinvested a portion of the energy sector sales into RRC.
The fund also reduced its exposure in Ovintiv Inc (OVV) selling 4 million shares worth $184 million. The fund retained a 3.32% portfolio allocation but almost halved its exposure.
Third Point trimmed one of its larger positions in Sentinel One (S), selling 19 million shares in a transaction worth $485.64 million. The fund sold around ¼ of the total position but retains an 8.77% weight. The stock is down -74% year to date, struggling to maintain a high valuation premium with the rest of the technology sector. The company has guided investors that it will generate $415-417 million in sales for the year, which is less than 1/10th of its $5 billion market cap.
Energy explorer Antero Resources (AR) was on the list with a 100,000 share sale worth $3.05 million. The fund retained 1/6th of its total position with a small 0.05% portfolio weight.
Rail transport and real estate company CSX Corporation (CSX) was reduced by $73.26 million from a 2.75 million share sale. The fund retained a 1.32% portfolio weight.
Other sales included Dow Chemical (DOW) retaining a 2.16% weight, a total sell-down of Crown Holdings (CCK), a complete sale of Archaea Energy (LFG) and a trim of one of the funds largest positions in Danaher Corp (DHR) to a 12.60% weight.
This article originally appeared on Fintel
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