Tariffs Test Loeb's Financial Picks: Third Point Adjusts Bets As Markets Brace For Economic Blowback

Hedge fund manager Dan Loeb had five major financial stocks in the Third Point LLC portfolio, each on the downtrend.

What Happened: Last week, shares of companies within the broader financials sector traded lower as markets reacted to President Trump‘s sweeping tariff announcement.

Here’s a look at some of Loeb’s financial stocks year-to-date:

• Apollo Global Management, Inc. APO: Shares dropped 33.54% compared to Fidelity Disruptive Finance ETF FDFF decline of 17.85% YTD. As of the fourth quarter of 2024, the investor lowered the stake to 400,000 shares from 950,000 shares as of the third quarter of 2024.

• Brookfield Corporation BN: The stock dipped 20.59% vs its peer BlackRock, Inc. BLK that plummetted 19.92% YTD. Loeb raised the stake to 4,990,000 shares as of the fourth quarter of 2024 from 4,725,000 as of the third quarter of 2024.

• Capital One Financial Corporation COF: Shares were down 14.28% compared to Davis Fundamental ETF Trust Davis Select Financial ETF DFNL, which saw a decrease of 9.68% YTD. Third Point acquired 925,000 shares in the fourth quarter of 2024.

• LPL Financial Holdings Inc. LPLA: The company’s shares tumbled 13.58% versus Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF GABF decrease of 15.99% YTD. The investor increased their stake to 655,000 shares in the fourth quarter of 2024 from 485,000 shares as of the third quarter of 2024.

• Discover Financial Services DFS: The stock dived 14.30% compared to iShares Focused Value Factor ETFFOVL decline of 12.16% YTD. Loeb acquired 640,000 shares in the company in the fourth quarter of 2024.

Why It Matters: U.S. banks and economists are now on recession watch.

JPMorgan analyst Maia G. Crook raised the U.S. recession risk to 60% from 40% last month, citing tariff hikes as the biggest U.S. tax increase in decades.

Last week, Trump argued it was necessary to address the U.S.'s “large and persistent trade deficit,” adding: “Treat us like we treat you.”

The Trump administration proposed steep new tariffs on several countries, including 54% on China, 46% on Vietnam, 36% on Thailand, and 20% on the EU, while maintaining current rates for USMCA-compliant goods from Mexico and Canada.

Read Next:

• These 5 Dan Loeb Portfolio Stocks Are Up Over 30% In The Past Year

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