Third Point apparently bought back a big stake in Google parent Alphabet.
The search giant was the hedge fund firm’s fifth-largest long position at the end of last month, according to the firm’s January tear sheet, made public Monday evening. Third Point seems also to have initiated a position in telecom giant Verizon Communications after the end of the third quarter. Verizon was one of the hedge fund firm’s biggest winners in January.
Third Point had taken a new large stake in Alphabet in first-quarter 2023, the stock becoming its fifth-largest long as of the end of March, according to firm and regulatory documents. Third Point then unloaded 70 percent of its stake in the second quarter and about 37 percent of the remaining position in the third quarter, making the stock only its 19th-largest long as of September 30, per regulatory documents.
The fourth-quarter 13F filing is not yet available, and Third Point did not respond to a request to comment Monday evening.
So far, the renewed interest in Alphabet has not worked out: The stock was Third Point’s fourth-biggest loser in January, according to the firm’s monthly report.
Third Point Offshore squeezed out a gain of 10 basis points in the year’s opening month, compared with a 1.7 percent gain for the S&P 500, including dividends reinvested, the report says. The hedge fund firm headed by Dan Loeb had entered 2024 70 percent net long, an exposure it more or less maintained at the end of January.
That month, Third Point lost 30 basis points from its equity portfolio, but this was offset by a 30-basis-point gain from its credit book. Its five biggest winners for the month included three of the Magnificent Seven: Microsoft, Meta, and Amazon. Rounding out the top contributors were Verizon and diversified life sciences and diagnostics company Danaher. The five biggest losers were Pacific Gas & Electric, DuPont, health insurance company Humana, Alphabet, and Rentokil Initial, a British business services group.
Entering February, Third Point’s five largest long positions were PG&E, Microsoft, Amazon, Bath & Body Works, and Alphabet.
Third Point has been struggling for more than two years. In 2023, it finished the year up 4.1 percent — but only after gaining 5.3 percent in December and 5 percent in November. Even so, it fell far short of the S&P 500, which was up 26.3 percent, including reinvested dividends. The fund had been in the red for most of the year. Still, it remains well below its high-water mark after dropping 21.7 percent in 2022.