Third Point LLC acquired new stakes in Facebook Inc. and Chinese e-commerce companies Alibaba Group Holding Ltd. and JD.com Inc. during the second quarter of 2020 as it divested positions in Sony Corp. and drugmaker Allergan PLC.
The hedge fund purchased 2 million shares of Alibaba, which were worth $431.4 million as of June 30, according to S&P Global Market Intelligence's compilation of U.S. SEC data. The New York-based fund, run by Daniel Loeb, initiated a $193 million stake in Facebook and a $195.6 million stake in JD.com.
Third Point also took new stakes in 11 other companies, including sportswear-maker Nike Inc. and apparel retailer The Gap Inc.
The Walt Disney Co. was Third Point's top holding at the end of June. The fund boosted its stake in the entertainment and media company by 286% over the first quarter, accumulating 5.5 million shares worth $613.3 million.
Third Point decreased its position in Deerfield, Ill.-based drugmaker Baxter International Inc. by 65.5% during the second quarter. It also sold shares in Amazon.com Inc. and Visa Inc., among others.
During the second quarter, Third Point exited positions in eight companies, including Allergan, Centene Corp. and Sony. Its divestiture of $763.6 million worth of Allergan shares marked its biggest exit. Allergan was acquired by AbbVie Inc. in May in a $63 billion deal.
Loeb's fund sold 6,515,000 shares of Centene, worth $387.1 million. It also eliminated its $39.9 million stake in Sony after urging the Japanese electronics retailer to shed its noncore businesses in January.
The total value of Third Point's holdings increased to $7.26 billion during the quarter.
Financials stocks marked Third Point's largest industry holding, valued at $2.05 billion, closely followed by healthcare stocks at $2.04 billion. Technology, media and telecommunications made up the next-largest portion at $1.67 billion, followed by consumer at $1.34 billion.