Value Investor Dan Loeb Bets Big On Tech, But Dumps Disney: Here Are His Top Picks

During the dot-com boom in the late 1990s to early 2000s, it seemed like any company that wanted its share values to increase would simply issue a PR with the word ".com" in it, and the stock would move higher.

In 2023, the sentiment is largely similar, with investors pushing up the share prices of most tech companies that are using artificial intelligence (AI) in their operations.

It seems Dan Loeb's Third Point got the point this quarter, as its largest new position is in a company that is fighting to be the forefront of the emerging technology: Alphabet Inc GOOG GOOGL.

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Third Point’s Q1 2023 trades have shown a fresh Google acquisition of 4.75 million shares. The investment represents 8.06% of Third Point’s portfolio, making it the largest new holding for the period.

Loeb is known for value investing, so the Google move may indicate a strong vote of confidence from Third Point in the tech giant’s value and potential for growth.

Third Point's Q1 trades also include new, or added positions in information technology stocks like Micron Technology Inc MU, Salesforce.com Inc CRM, and Advanced Micro Devices Inc AMD, further establishing the hedge fund’s bullish view on the tech sector.

But it’s not just the tech space that has caught Loeb’s eye. The investment manager also made substantial new acquisitions in the healthcare and communications sectors, including a new stake in HCA Healthcare Inc HCA and Alibaba Group Holding Ltd BABA, demonstrating a diversified approach to value investing.

The hedge fund also offloaded several positions this quarter. Notably, it sold all its holdings in The TJX Companies Inc TJX, The Walt Disney Co DIS, Ovintiv Inc OVV, among others.

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