- Dan Loeb’s Third Point seems to have sold its Snowflake stock only a few days after buying it.
- The billionaire investor’s hedge fund listed Snowflake as one of its best-performing investments in September, after the cloud-data platform went public on September 16.
- However, Third Point recently published the contents of its stock portfolio as of September 30, and Snowflake was notably absent.
- Loeb and his team may have bought Snowflake shares, celebrated as they more than doubled on their first day of trading, and decided to quickly extract their profits.
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Billionaire investor Dan Loeb appears to have cashed out his Snowflake stock less than two weeks after buying it.
Loeb’s Third Point highlighted Snowflake as one of its winning bets in September in a monthly portfolio update. The hedge fund likely invested in the cloud-data platform when it went public on September 16, and benefited from the stock immediately doubling in value on its first day of trading.
However, there was no sign of Snowflake in Third Point’s quarterly portfolio disclosure on Friday, which listed all of its US stock positions as of September 30. The technology stock was absent from the fund’s October portfolio update too.
The best explanation is that Loeb and his team bought Snowflake shares in mid-September, scored a big gain from the IPO pop, then cashed out their profits before the end of the month.
Third Point didn’t immediately respond to a request for comment from Business Insider.
Loeb’s swift exit from Snowflake was one of several changes to his portfolio last quarter. For example, Third Point exited its positions in Activision Blizzard, Gap, Nike, Raytheon, and Take-Two. It also took stakes in Caesars Entertainment, Expedia, Ferrari, Microsoft, Palantir, Pinterest, and Planet Fitness.
Snowflake has attracted other high-profile admirers including Warren Buffett’s Berkshire Hathaway and Marc Benioff’s Salesforce, both of which invested in the company in private placements immediately after it went public. There’s no indication they have joined Loeb in cashing out their profits.
A Global Asset Management Seoul Korea Magazine