Dan Loeb: Market Thoughts
In Dan Loeb's 2015 investor letter he notes that he's bearish. Loeb notes that his Third Point hedge fund is taking defensive measures.
Notably, he's been cutting exposure to commodities and China, saying, "A renewed focus on generating alpha on both sides of the portfolio has led us to increase single-name equity shorts by four-fold over the past year. Our total equity short exposure is nearly $4.5 billion today."
Loeb has called this a Wall Street recession, with the troubles confined to Wall Street - however, they could easily spill over to Main Street.
Per Third Point's 4Q 13F, here are the biggest moves the fund made:
New - ACE (no. 15 largest holding). MS (no. 19). AXTA (no. 20).
Adds - increased AGN position by 50% (no. 2 largest holding). Added 26% to SJM (no. 13 holding).
Reductions - dumped 99% of its YUM and KHC stakes, was no. 5 and no. 6 largest holdings in 3Q. Dumped all of TMUS (was no. 8). And sold 55% of EBAY (was no. 12).
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