Third Point Exits $1 Billion Alibaba Stake, Adds McKesson

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Dan Loeb
Hedge fund manager Dan Loeb. Photographer: Simon Dawson/Bloomberg

Billionaire Dan Loeb’s Third Point hedge fund exited a stake in Alibaba Group Holding Ltd. in the first quarter that was valued at $1 billion at the end of 2014.

Third Point, which oversees about $17.4 billion, sold 10 million shares of China’s biggest e-commerce company, according to a regulatory filing Friday. Alibaba shares fell 20 percent in the first quarter after the company reported revenue that missed estimates in January. The stock jumped earlier this month after Alibaba named a new chief executive officer and posted a 45 percent increase in revenue.

The New York-based hedge fund added 11 new companies to its holdings, including a 6.6 percent stake in Clayton Williams Energy Inc., an oil and natural gas explorer, becoming its second-largest owner after namesake Clayton Williams Jr., who controls the company.

Third Point also added a new position in pharmaceutical distributor McKesson Corp., which may be a potential bidder for Omnicare Inc., a supplier of drugs to nursing homes, people with knowledge of the matter said last month. Loeb said earlier in May that his firm has a position in Yum! Brands Inc. worth about $1 billion.

Third Point also exited stakes in Citigroup Inc. and computer-storage company EMC Corp. during the quarter.

Money managers who oversee more than $100 million in equities in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non-U.S. securities, holdings that aren’t publicly traded, or cash.

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