Dan Loeb’s Third Point increased its belief in big tech winners last quarter, buying larger positions in Microsoft, Nvidia and Amazon, according to quarterly regulatory filings. The fund made additional investments in all three megacap stocks in the third quarter, more than doubling its stake in Microsoft, making it the Xbox and Windows maker’s fourth-largest holding at the end of September. Mr. Loeb exited nearly all of his positions in the so-called Magnificent Seven earlier this year amid tariff concerns, but recent moves show he is restructuring his tech investments as market sentiment improves. Still, Third Point’s largest holding was in PG&E, California’s beleaguered utility company that is working to rebuild its finances after a series of devastating wildfires. Loeb argued that PG&E’s turnaround remains significantly undervalued and that he was one of the company’s strongest supporters during its long turnaround. The filing also revealed that Third Point holds a significant put position in the SPDR S&P 500 ETF (SPY). Loeb has been largely constructive on the market this year, so his bearish stance on options is likely more of a portfolio hedge than a directional call. Meanwhile, Loeb is leaning more into credit, particularly private credit, where he believes there are some of today’s most attractive opportunities.
