- Guru’s biggest purchase was Alight’s new position.
- Loeb also cut Intel’s stake.
- He has sold out from SoFi Technologies, Uber and JD.com.
Third point reader Daniel loeb (Trades, Portfolio) released its third quarter portfolio earlier this week.
Using an event-driven, value-oriented approach to stock selection, Guru New York-based companies know by taking the activist position at unprofitable companies with catalysts that help unleash the value of shareholders. It has been.
In a quarterly shareholder letter, Loeb stated that 2021 was a good year for both the third point portfolio and the market.
“Risk assets have overcome the barriers of concern because easy financial conditions and post-vaccination enthusiasm have created a favorable market background,” he writes. “Towards 2022, we are constructive but more cautious, as fiscal and monetary stimulus tapering should reduce support for asset prices. On the plus side, consumers. The balance sheet remains strong, inventories are low, it can be marketed, and temporary supply shocks should be resolved in the coming quarters. “
With these considerations in mind, Loeb entered 35 new positions during the quarter, exited 24 shares and added or reduced to many other existing investments. Notable deals for the three months ended September 30 include new investments in Alight Inc. (ALIT, Financial), a decline in Intel Corp. (INTC, Financial) holdings, and SoFi Technologies Inc. (SOFI). , Financial) includes the sale. , Uber Technologies Inc. (UBER, Financial) and JD.com Inc. (JD, Financial).
Loeb invested 17 million shares in Alight (ALIT, Financial) and allocated 1.07% of its equity portfolio to the shares. Shares for the quarter averaged $ 10.42 per share.
A Las Vegas-based software company that provides an integrated cloud-based human capital solution for managing wealth and human resources needs has a market capitalization of $ 5.02 billion. The price-to-book value ratio on Tuesday was $ 5.79, trading at about $ 10.99.
Since listing through a special-purpose acquisition company in July, shares have increased by more than 20%.
After Blackstone Inc. (BX, Financial) acquired a record-holding and benefits company in 2017, alternative investment management companies announced plans to merge Alight Solutions with blank-checking company Foley Trasimene Acquisition Corp in January. After obtaining shareholder approval.
GuruFocus rated Alight’s financial strength as 8 out of 10.
Loeb holds a 3.72% stake and is the company’s largest and largest shareholder. David Tepper (Transactions, portfolios), Stephen Cohen (Transactions, portfolios) and Jim Simons (Trades, Portfolio)’Renaissance Technologies has also established a position at Alight.
The guru held down Intel (INTC, Financial) shares by 35.71% and sold 5 million shares. This transaction had a -1.64% impact on the equity portfolio. Stocks traded on average $ 54.24 each during the quarter.
He currently holds a total of 9 million shares, which make up 2.62% of the stock portfolio and is currently 10 shares.NS-Maximum position. GuruFocus estimates that Loeb has lost 10.27% of his investment so far.
A semiconductor chip maker headquartered in Santa Clara, California, has a market capitalization of $ 205.51 billion. On Tuesday, the price-earnings ratio was 9.81, the price-to-book value ratio was 2.28, and the price-to-book value ratio was 2.65, trading at about $ 50.49.
The GF Value Line shows that stocks are currently being valued fairly based on historical ratios, historical performance, and future earnings forecasts.
Intel’s financial strength was rated by Guru Focus as 6 out of 10. This is because it is supported by a comfortable level of interest coverage and a high Altman Z score of 3.28, which indicates good condition. The rate of return on investment capital also masks the weighted average cost of capital. In other words, value is created as the company grows.
The company’s profitability is 8 out of 10 as a result of increased operating profit, equity outperforming the majority of competitors, strong returns on assets and capital, and a moderate Piotroski F score of 6 out of 9. I got points. Shows the typical business situation of a stable company. Despite recording consistent revenue and revenue growth over the past few years, Intel’s predictability rank of 3.5 out of 5 is notable. According to GuruFocus, companies in this rank have averaged 9.3% annual revenue over a 10-year period.
PRIMECAP management (Trades, Portfolio) is Intel’s largest and largest shareholder with a 0.89% stake.Other top guru investors are: Kenneth Fisher (Transactions, portfolios), Seth Klarman (Transactions, portfolios), Chris Davis (Transactions, portfolios), Al gore (Transactions, Portfolios), Pioneer Investment, Parnassus Endeavor Fund (Transactions, Portfolios), with Simons companies Michael Price (Transactions, portfolios).
After establishing a position at SoFi Technologies (SOFI) in the second quarter, investors dumped all 28.9 million shares, impacting their equity portfolio by -3.25%. Shares for the quarter averaged $ 15.70 per share.
GuruFocus data show that Loeb lost an estimated 27.21% on investment.
A San Francisco-based company that provides personal financial services online has a market capitalization of $ 17.56 billion. On Tuesday, the price-to-book value ratio was 4.36 and the price-to-book value ratio was 23.57, trading at about $ 21.80.
Since its debut on the SPAC in early June, stock prices have fallen 3.75%.
In January, SoFi announced plans to merge with Social Capital Hedosophia Holdings Corp. V to become a publicly traded company. The contract was signed in May.
GuruFocus rated SoFi’s financial strength as 3 out of 10.
Of the guru who invested in SoFi George Soros (Trades, Portfolio) has the largest holding of 0.02% of outstanding shares. Luis Moore Bacon (Trades, Portfolio) and Simons companies also have equity positions.
Loeb has closed 8.35 million shares of Uber Technologies (UBER, Financial). This had a -2.45% impact on the equity portfolio. Shares for the quarter averaged $ 43.76 per share.
GuruFocus says he lost an estimated 20.72% in his investment.
Headquartered in San Francisco, a ride-sharing company that also provides food and parcel delivery services has a market capitalization of $ 89.07 billion. On Tuesday, the price-to-book value ratio was 6.03 and the price-to-book value ratio was 5.48, trading at about $ 45.94.
According to the GF Valueline, the current stock price is fairly valued.
GuruFocus rated Uber’s financial strength as 4 out of 10. As a result of issuing about $ 5.1 billion in new long-term debt over the past three years, the company’s interest coverage is inadequate. Altman’s low Z-score of 1.54 also warns that if liquidity does not improve, there is a risk of bankruptcy.
The company’s profitability didn’t go well either. With a negative margin and returns, we scored 1 out of 10 and outperformed the majority of our peers in the industry. Uber’s Piotroski F score is as low as 3, indicating poor business conditions, recording a loss in operating income and a decline in earnings per share over the past few years.
Frank Sands (Trades, Portfolio) is Uber’s biggest guru …