Third Point has boosted its stake in Taiwan Semiconductor Manufacturing Co. since the end of the first quarter. The semiconductor contract manufacturing giant was the hedge fund firm’s fifth-largest long position as of the end of July, according to the firm’s monthly report, made available Monday evening.
July was the first month that Third Point, headed by Dan Loeb, listed TSMC as a top-five holding in its monthly reports. At the close of the first quarter, TSMC was Third Point’s 14th-largest U.S.-listed long position, according to the most recent 13F filing. The second-quarter filing, which should be available by the middle of next week, will provide more insight.
Third Point also disclosed in separate reports that TSMC was the firm’s fourth-biggest winner over the first six months of 2024 and for the year through July. The stock was up 60 percent over the first seven months.
It's likely Third Point bought an additional big chunk of the stock sometime in the second quarter. Price appreciation no doubt played a big part in the increase.
Third Point also seems to have reduced its stake in Facebook parent Meta Platforms. The stock was Third Point’s fourth-largest long position as of the end of June but was not ranked among the firm’s top-five holdings at the end of July. It is unknown how many shares Third Point sold.
These two major moves are especially notable given the stock market’s recent sharp selloff, especially among the most popular tech stocks, including TSMC and Meta.
Shares of Meta are down about 12 percent since their July 5 high, and TSMC is off by more than 22 percent since its July 10 peak. These are the two most significant disclosures in Third Point’s July tear sheet.
The equities-heavy multistrategy hedge fund reported a small, 40-basis-point decline in July, compared with a 3.2 percent gain for the S&P 500 over the same period, including dividends reinvested. For the year through July, Third Point was trailing the benchmark, up 10.9 percent versus an increase of 16.7 percent.
Third Point’s five biggest winners so far this year have been energy company Vistra Corp., Amazon, Microsoft, TSMC, and diversified life sciences and diagnostics company Danaher Corp. The biggest losers this year are retailer Bath & Body Works, DuPont, and three different, undisclosed short positions.
Heading into what is already a volatile August, Third Point’s five biggest equity long positions were Amazon, PG&E, Microsoft, TSMC, and Danaher. At the end of July, Third Point also slightly increased its net long exposure, to 87.5 percent, with all of the increase resulting from a boost in long exposure.
