synopsis

Broadly, the outlook was defensive, as the hedge manager bought into the consumer and real estate spaces.

Hedge fund manager Daniel Loeb appears to be bearish on the stock market amid the ongoing economic uncertainty triggered by President Donald Trump's tariff policy. In the first quarter, he tinkered with his positions in the "Magnificent Seven" companies — a moniker given to the biggest mega-cap stocks.

Broadly, the outlook was defensive, as Loeb bought into the consumer and real estate spaces.

The 13-F report filed by Loeb's Third Point LLC late Thursday showed that the firm in Q1 bought puts (330,000) in  SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the broader S&P 500 Index.

Tech Shifts

Among the "Magnificent Seven" stocks, Third Point cashed completely out of Meta Platforms, Inc. (META), which held fairly well amid the tariff uncertainties, and Elon Musk-led electric-vehicle company Tesla, Inc. (TSLA).

It trimmed its Amazon (AMZN) holdings by about 32%, leaving the firm with 2.35 million shares of the e-commerce giant. Microsoft's (MSFT) stake was reduced by about 48% to 315,000.

Meanwhile, Third Point took a fresh position (1.45 million) in artificial intelligence (AI) stalwart Nvidia (NVDA).

Loeb also added 1 million shares of social e-commerce company Pinterest (PINS) from zero in the fourth quarter, while it divested Workday (WDAY) shares.

Chip foundry Taiwan Semiconductor Manufacturing (TSM) shares were held unchanged at 1.78 million despite the ongoing efforts of the Trump administration to bring manufacturing into the U.S.

Other New Adds

Third Point also bought a fresh 3.775 million stake in telecom giant AT&T (T), which is considered a defensive play amid the uncertainties.

The firm also bought retailer Casey's General Stores (CASY), real-estate services company CoStar Group (CSGP), household and personal products company Kenvue (KVUE), specialty business services company RB Global, Inc. (RBA), utility Talen Energy (TLN), furnishings and appliances company SharkNinja (SN), and United Steel (X).

Bulk purchases were in Kenvue (8.9 million), United Steel (3.625 million), and CoStar (nearly 2 million).

While United Steel awaits regulatory nod to be acquired by Nippon Steel, Kenvue, a maker of Band-Aids and Tylenol, is under pressure from activist investors to explore divestments or a sale.

Other Liquidations

The stocks that Loeb divested included Cinemark (CNK), Clear Channel Outdoor (CCO), and Ferguson Enterprises (FERG).

Other notable trimming/additions included a 275% increase in Apollo Global Management (APO) and a 750% increase in Brookfield Corp. (BN), both asset managers.

Third Point also boosted its stake in lodging company Soho House & Co. (SHCO) by 121% while trimming its Intercontinental Exchange (ICE) position by 47%.

The SPY is up 1.05% year-to-date. 

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