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Loeb’s Third Point Net Equity Exposure Lowest in a Decade, Adding to Oil and Gas Names -Breaking


© Reuters. Loeb’s Third Point of Net Equity Exposure Lower Than in the Last Decade.

Dan Loeb stated in his quarter one letter that his Third Point LLC Offshore Fund dropped 11.5% and that the fund had adopted a much more defensive position. The fund’s April performance was strong against the market. It fell just 1%, compared to drops of 8%, 13%, and for the. Loeb adds to Oil and Gas stocks and opens short positions.

Loeb claimed that firm’s net equity exposure has fallen and their buying power is higher than any other time in the last 10 years. The beta-adjusted net equity exposure of their firm is 41% as compared to 75% at its beginning.

Loeb stated that the fund had started positions in oil and gas companies during Q1 in addition to Shell PLC’s (NYSE:) winning position. Additionally, they added companies in materials that they think will be benefited by inflation, shortages of supply, and adoption of EVs or other renewable energy sources.

Loeb noted that U.S.-based oil and gas companies can be particularly appealing due to the unresponsible energy policy of many developed countries, including the U.S.

The hedge fund manager said they continue to add to their position in Shell, initiated a long position in Glencore (OTC:) in the first quarter and continue to see “immense value and potential” in Pacific Gas & Electric (PCG).

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Loeb stated that tech stocks are hard to predict a bottom even though there have been massive falls. Many of these companies relied upon stock-based compensation, as well as controversial accounting or reporting techniques. This type of compensation can cause problems for companies that employ these employees. It could lead to decreased stock grants in the future or higher cash wages, which may impact margins.