Dan Loeb Q3 AUM Lower By $600 Million To $2.1 Billion, Discloses 48 Million Share Yahoo Stake

Tyler Durden's picture

David Tepper was not the only one cutting his exposure across the board: in Q3, Dan Loeb's total reported AUM dropped from $2.7 billion to $2.1 billion (granted this is not indicative of his actual portfolio holdings across funds, just what he reports to the SEC). The most notable change was the $632 million stake, or 48 million shares, he reported in Yahoo - a move which Zero Hedge disclosed first, although the full size of which was unknown. In addition to a $632 million equity stake, he also revealed at $26.7 million call equivalent to 15 million shares of stock. Aside from that the main story was one of derisking as he sold off his entire positions in BP, Cablevision, Freeport McMoRan, Freescale, Lyondell, NXP, Pall, ON Smi, Pall, Potash, Quest, Safeway, Swift, and Whirlpool. In addition to YHOO, he added a few other new positions, the most notable and largest of which is HollyFrontier: the same new position as was initiated by Tepper, as noted previously. Perhaps this one deserves a special focus as the hedge fund hotel appears to have spoken and to like it, and is largely under the radar. In addition, he also started new positions in Celanese, Agco, Expedia, FMC, Gardner, Gilead, Fragtech, Warnaco and some other small stub positions. But overall, the theme of the portfolio is one of broad portfolio reduction and deleveraging, coupled with going aggressively to cash.

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The trend is your friend's picture

hhhmmmm...what are they afraid of?

CPL's picture

The end of the multinational.

 

Seriously look at what they are dumping.  All those stupid umbrella companies that house companies that actually make something.

i-dog's picture

... and invested into a Jesuit-controlled oil company that is on a major acquisition trail (nearly doubled revenues in 2010, with just a fractional increase in employees). Why am I not surprised?

redpill's picture

These clueless cowards won't buy a piece of gum without calling every other hedge fund and making sure someone else is buying it too.

The trend is your friend's picture

they are all clueless is dead on.  Hedgefunds are just as clueless as the Euro leaders right now.  If these "experts" dont know what to do, everyone invested is screwed

redpill's picture

This is the crop the bailout-loving central planners have sown, so enjoy what you reap bitches!

 

topcallingtroll's picture

Everybody is completely focused on the italy bond calendar this month. We may see a meltup if this next one is well subscribed.

Seriously do you think this next italian bond deal is going to be tepid? Think about it. Sure looks like time to go triple long.

slaughterer's picture

Fuck Holly Frontier.  I have been doing fine with Pacific Ethano (PEIX) these days.  

slaughterer's picture

You know what, fuck Loeb, and fuck YHOO.  They both suck.  

Josh Randall's picture

These guys are literally throwing darts at a board at this point -- why not try PSLV fellas so you can get something of worth for your paper eventually ?

s2man's picture

Now we know where Tepper bought his BP shares.

WTF_247's picture

Mutual funds have been having net monthly outflows for a few years.  There are many more articles like this one about hedge funds going more toward cash.

 

So - if all this is true, who is holding all of the "liquidated" shares of companies and how does the market continue to push higher using less and less money?  For every seller there has to be a buyer - since prices are not really dropping, the net investment amounts in the markets remains constant.

 

I guess it could be the fed doing it or soverign wealth funds picking up the slack, but at some point the game of musical chairs will have to start claiming a victim

topcallingtroll's picture

Inverse distribution.

It will be a total meltup if the next italian bond sale is a success.

Oh god I am itching to go triple long, but should quit while ahead. That was jesse Livermore's problem never knew when to quit.

J 457's picture

It will take much more than Italian bond sales....

These funds are liquidating and moving to cash for a reason.  Either they feel the worst is yet to come, or they anticipate facing steep redemptions, or they believe the market will present a better entry point in 2012.  Going triple long at SPX 1,250 might be a loosing proposition.  Better just wait until a bounce off 1,220 range or a break above 1,290.  Don't go bullish before end of Nov, too many surprises lurking in the shadows.  BAM!  Did you feel it!  SPX down to 1,070 in three days. 3x's long ETF down 50%. 

 

 

Irish66's picture

Volume on the way up was light, volume on the way down is light.

Boy it is easy to manipulate this market.  But it bought them time

to get out kinda like someone set it up that way.

Saxxon's picture

More 2 Minutes Hate for the Big Swinging Dicks - why is everyone  beetching?

Georgesblog's picture

I see this as people hoping they have time to grab their stocks and bonds, on the way out of a burning building. As time goes on, it may not be worth the effort. The financial landscape is getting swept by a wildfire. Europe is the match, paper is the fuel.

http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/


Rollerball's picture

RBS is a wtf quid pro quo, but I've bought at the top and sold at the bottom too, so ...