Dan Loeb went big on Wall Street.
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Dan Loeb made a nearly $1 billion bet on Wall Street (GS, JPM, BAC)
Third Point went big on Wall Street bank stocks, according to his hedge fund's latest 13-F filing.
A February 10 regulatory filing shows that Loeb's Third Point took large positions in JPMorgan and Bank of America and, to a lesser extent, Goldman Sachs — investing nearly $1 billion in total in the banks' shares during the fourth quarter of 2016.
The JPMorgan position was worth about $453 million; the Bank of America holding about $387 million; and the Goldman holding about $96 million, the filing shows.
Bank stocks soared after of the US election but have since leveled off. JPMorgan, Goldman Sachs, and Bank of America are all flat or up slightly for the year to date.
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The regulatory filing, called a 13-F, lists long stock positions that investment firms make. The positions are current as of 45 days prior, so it is possible that Third Point has since changed its positions.
In a recent letter to clients, Loeb said that his $15 billion hedge fund firm was betting President Donald Trump's propositions for tax cuts, infrastructure spending, and deregulation would be great for investors.
"This environment is undoubtedly better for active investing — just as active investing was considered to be on its deathbed," Loeb wrote in the letter, dated earlier in February.
Loeb also wrote that he had made a large move into the securities of financial companies. He said that the sector represented about 12% of the fund, up from 4.4% on November 8, the day of the US election. Loeb didn't mention positions in the banks, and it's not clear when during the fourth quarter of 2016 that Third Point made the investments.
Third Point returned about 6.1% last year, according to the letter, less than the roughly 12% gain for the S&P 500 index, with dividends.
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