Hedge fund tracking website Market Folly recently reports on new holdings in Dan Loeb’s broadly followed hedge fund Third Point Capital. Two of the firm’s new positions are held by Covestor model managers (as of 7/26):
Mosaic (NYSE: MOS)
The fertilizer giant intrigued Loeb’s fund due to the removal of a large overhang: the Cargill family selling their stake in the company. Third Point acquired their stake via a secondary at $65 per share. They have also subsequently added to their position during the market volatility.
They like grain and corn fundamentals and think potash fertilizer has “yet to recover to trend-line levels of demand.”
Sara Lee (NYSE: SLE)
They already owned this position, but added to their stake in Q2. Third Point believes that the market underestimates the company’s earnings power and thinks both of their businesses (meat and coffee) could be attractive to strategic buyers.
Equity Opportunity by Bill Deshurko held MOS as of 7/25.
S&P 500 Best of Breed by Conrad Leifur held SLE as of 7/25.
Dan Loeb is also known for his scathing letters. The newest letter (embedded below) does not disappoint, with a harsh critique of Washington politics regarding the debt ceiling.
Third-Point-Q2-2011
Sources:
“Third Point Buys Mosaic (MOS) & Sara Lee (SLE): Q2 Letter” Market Folly, 7/25. http://www.marketfolly.com/2011/07/third-point-buys-mosaic-mos-sara-lee.html
