Loeb’s Third Point Bet on Banks Amid Trump Election Share Rallyby
Third Point, the sometimes-activist hedge fund run by Dan Loeb, took new stakes in a handful of banks including JPMorgan Chase & Co. in the fourth quarter, amid a rally in financial stocks after President Donald Trump’s election victory.
Loeb disclosed a $453 million stake in the New York-based bank -- his fifth-biggest position -- along with new holdings in Bank of America Corp., Goldman Sachs Group Inc. and PrivateBancorp Inc., according to a regulatory filing Friday.
New York-based Third Point also bought into eight other new stocks, including media giant Time Warner Inc., health insurer Anthem Inc. and Honeywell International Inc. It exited holdings in 12 companies including drugmaker Allergan Plc, medical-devices maker St Jude Medical Inc. and KFC-franchiser Yum! Brands Inc., the filing showed.
Bank stocks have rallied since Trump’s surprise victory in November on expectations for stimulus and policy changes. The KBW Bank Index is up 25 percent since the start of that month, according to data compiled by Bloomberg.
Third Point has focused much of its recent activism in Japan, where the firm’s investments have included Seven & i Holdings Co. and Sony Corp. Loeb is also active in ongoing U.S. investments including auction house Sotheby’s and medical-device maker Baxter International Inc.
Most of Third Point’s equity stakes aren’t tied to activism, where a fund seeks to convince executives and directors to make changes it argues will reward shareholders.