Who doesn’t want to follow investment strategies of billionaire investor Daniel Loeb? His investments have been declared through 13-F filings. Investors should note that hedge funds of a certain size are required to report their long equity filings every quarter, known as 13-Fs. These regulatory filings are out after 45 days of each quarter (per the source), so filings could be changed at the time of writing.
Still, investors could have an idea of what’s hot and what’s not for such great investors. Below we highlight those alterations in portfolios so that retail investors can imitate their strategies either through stocks or ETFs.
Dump Tech & Media Biggies
Loeb’s Third Point LLC left its positions in Alibaba (BABA), Microsoft (MSFT) and Netflix (NFLX) during the fourth quarter. So, investors may be cautious about Alibaba-rich ETFs like Invesco BLDRS Emerging Markets 50 ADR Index Fund (ADRE - Free Report) , ProShares Online Retail ETF ONLN, Invesco BLDRS Asia 50 ADR Index Fund (ADRA - Free Report) and iShares MSCI China ETF (MCHI - Free Report) .
Microsoft-heavy ETFs like Technology Select Sector SPDR Fund (XLK),iShares U.S. Technology ETF (IYW - Free Report) andVanguard Information Technology ETF (VGT - Free Report) and media ETF Invesco Dynamic Media ETF (PBS - Free Report) also has exposure to Netflix.
Have Staples in Your Investing Diet
Third Point stacked up on Campbell Soup (CPB - Free Report) by an incremental 3 million shares, marking an increase of 16%. The fund last owned 21 million shares of Campbell Soup, making it the second largest equity long holding. Third Point’s holding marked about 7% of Campbell’s 302 million shares outstanding.
Bet Big on salesforce.com
His other top buys include salesforce.com (CRM - Free Report) . This Zacks Rank #1 company is the market and technology leader in on-demand business services. It hails from a top-ranked Zacks Industry (top 19%) and a top-ranked Zacks sector (top 25%).
ETFs that are heavy on salesforce.com are iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , First Trust Dow Jones Internet Index (FDN - Free Report) , Entrepreneur 30 Fund (ENTR - Free Report) and First Trust ISE Cloud Computing Index Fund (SKYY - Free Report) (read: Another Cloud Computing ETF in the Making).
Get Rid of PayPal
Third Point cut out its exposure to PayPal (PYPL) by more than half, dumping more than 5 million shares. Notably, PayPal used to be a top five-stock holding. The stock currently has a Zacks Rank #4 (Sell).
Though PayPal Holdings’ non-GAAP earnings of 69 cents per share in the fourth quarter of 2018 surpassed the Zacks Consensus Estimate by a couple of cents and increased 25.5% on a year-over-year basis, net revenues improved 14% to $4.228 billion but missed the Zacks Consensus Estimate of $4.238 billion.PayPal highlighted three difficult areas like lingering ties with eBay, adverse currency translation and slowing global growth (read: eBay vs. PayPal ETFs: Which to Pick After Q4 Earnings?).
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