Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Third Point's Loeb turns back on Disney, cools on Amazon in first quarter

Stock Markets May 16, 2022 06:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. FILE PHOTO: A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid 2/3

By Svea Herbst-Bayliss

BOSTON (Reuters) - Third Point liquidated its position in Walt Disney (NYSE:DIS) Co during the first quarter, two years after the hedge fund first invested and began urging the media company to spend more aggressively on its streaming platform, and slashed its stake in Amazon.com Inc (NASDAQ:AMZN).

The New York-based investment firm sold 2 million shares of Disney, according to a regulatory filing on Monday. The move followed on the heels of sales made in the fourth quarter.

Third Point said last year that the Disney investment was paying off but urged management to take an "all-you-can eat approach to its direct-to-consumer offering."

The firm's billionaire founder, Daniel Loeb, wrote to investors in early May that the firm had taken a more defensive posture during the first quarter and exited a number of equity positions. He did not say which positions were liquidated.

Monday's filing also shows that Third Point exited upscale home goods retailer RH (NYSE:RH), department store Burlington Stores (NYSE:BURL) Inc and electric power and distribution company AES (NYSE:AES) Corp, among others.

RH's stock price has tumbled 48% so far this year while Burlington Stores fell 40%. AES is off 18% this year.

Third Point, which boosted its investment in Amazon only a few months earlier, slashed its position by 92% to own 17,500 shares at the end of March, the filing showed.

Loeb wrote to shareholders in February that he had increased his bet on Amazon, arguing new management would move the company forward with new initiatives. He did not mention Amazon in the May 6 letter.

He did write that the more defensive positioning allowed the firm to sidestep April's sharp market selloff after the firm lost 11.5% in the first quarter.

The S&P 500 is down nearly 16% year-to-date while the tech heavy Nasdaq Composite has tumbled more than 25%.

Loeb wrote in May that Third Point had found "interesting opportunities in energy and other cyclical stocks." Monday's filing shows a new investment in Canadian integrated energy company Suncor Energy (NYSE:SU) Inc, where activist investment firm Elliott Management is pushing for board seats and a strategic review. Third Point bought 3.5 million shares. Elliott bought 10 million shares during the first quarter, its filing shows.

Third Point's Loeb turns back on Disney, cools on Amazon in first quarter
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email