Dan Loeb‘s hedge fund agency Third Point was up four.6% for the second quarter and is up 10.7% for the yr. Third Point’s second quarter letter reveals they’ve re-entered Alibaba (BABA). They really feel now’s the time to re-enter because of the firm’s launch of personalised promoting, new advert tech for model advertisers, in addition to income potential from larger advert masses, amongst different causes.
Backing out internet money and another stakes, Loeb’s agency feels Alibaba’s core enterprise alone is value $121 per share (round 15x their 2019 EPS estimate of $eight.20) with earnings rising 30% year-on-year. They really feel BABA can shut the valuation hole with rivals like Tencent, which trades at 32x consensus 2018 EPS.
Third Point additionally reveals a stake in BlackRock (BLK) within the letter. Rather than merely being an asset supervisor. they really feel it’s “turning into a community or index-like enterprise, with earnings energy pushed by ETFs (by way of iShares) and knowledge & analytic providers (by way of Aladdin). They level out they’re principally oligopoly companies.
Also, a couple of months in the past we highlighted how this hedge fund has gone activist on Nestle and we posted Third Point’s letter on Nestle here.
Embedded under is Third Point’s Q2 2017 letter:
You can obtain a .pdf copy here.
For different current hedge fund letters, you can even learn Greenlight Capital’s Q2 letter here.
SOURCE: market folly – Read complete story here.