|Third Point's Dan Loeb Exits SNAP After Just 3 Months: 13F Filing |
By Nathan Reiff | August 14, 2017 — 11:18 AM EDT
Major Hedge Funds That Bought SNAP May Regret It: 13F Filings
Third Point's Dan Loeb Exits SNAP After Just 3 Months: 13F Filing
), the parent company of popular social media platform Snapchat, debuted its IPO in March of this year to a great deal of fanfare. In fact, many of the most prominent investors in the country scrambled to buy up shares of the new offering. Unfortunately, though, SNAP stock has declined in price significantly, dropping well below the initial IPO price of around $17 per share. As of this writing, SNAP is trading for under $12 per share. Now, as 13F reports become available for top investment firms over the past quarter, it is becoming apparent that some of the investors who were eager to get involved in SNAP when it debuted are now selling out of their positions before the stock price can dip further. Loeb's Third Point Sold Out of SNAP Shares According to a 13F report recently filed for Q2 by Third Point, the hedge fund of billionaire Dan Loeb, the firm sold out of its SNAP position at some point over the course of the second quarter. Although SNAP received a bump in price of 21.5% in May, following the last round of 13F reports, wherein Loeb and others revealed that they had bought into the stock, it has so far declined by about 33% in Q3. Some of the potential reasons for this drop may be the expiration of the lockup period, originally available to early investors, as well as a lackluster earnings report from Q2, according to CNBC.
Loeb had a significant position of SNAP shares, holding 2.25 million shares of the parent company to Snapchat as of the beginning of the second quarter. Clearly, it seems that Loeb has reconsidered his initial investment quite severely, having eliminated the entirety of that position over the course of the previous quarter.
Loeb Reshifts Interest to Dow Chemical Perhaps Loeb used some of the money freed up by sale of the SNAP holdings to buy up about 300,000 shares in Dow Chemical ( DOW
Dow Chemical Co
), increasing his firm's holdings to roughly 16 million shares. Dow will finalize its merger with DuPont ( DD
E.I. Du Pont De Nemours & Co
) at the end of this month, with spin-off units of the newly combined company appearing over the next year and a half. Loeb also dissolved his position in JPMorgan Chase, but bought up additional shares of Bank of America, increasing his holdings by 1.5 million to 15 million shares total. As with all 13F reports, it's important to keep in mind that Loeb and Third Point are revealing their standings as of the end of June of this year. Much could have changed in the weeks since then, so investors would be wise to remember that 13F reports look backwards to old information. According to Third Point's investor letter, its Offshore Fund returned 10.7% in the first half of 2017, outpacing the S&P 500 by 2.4%.
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