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Third Point buys Sony, Ross in Q1, divests part of Constellation Brands stake

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Third Point buys Sony, Ross in Q1, divests part of Constellation Brands stake

Third Point LLC took positions in Sony Corp. and Ross Stores Inc. during the first quarter of 2019 as it continued to scale back its ownership of brewer Constellation Brands Inc.

The hedge fund, run by Daniel Loeb, acquired 1.5 million shares of Sony, which represented 0.12% of outstanding common shares and were worth $63.4 million as of March 31, according to an SEC filing and S&P Global Market Intelligence. Loeb's fund reportedly built its stake in the Japanese electronics company as part of an activist campaign and has plans to raise up to $1 billion to purchase shares.

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Third Point also accumulated 1.6 million shares of off-price retailer Ross that were worth $149 million and represented 0.42% of Ross's outstanding common shares as of March 31. At the same time, it sold 40% of its shares in Constellation Brands, continuing a drawdown that began during the fourth quarter of 2018. Third Point had 1.05 million shares in the company, or 0.55% of outstanding common shares, worth $184.1 million as of March 31.

The fund's holdings in Campbell Soup Co. and Sotheby's, the consumer stakes that represent the fund's largest by portion of outstanding common shares, remained unchanged during the quarter. Its position in Campbell, worth $800.7 million, represented almost 7% of outstanding common shares, while its $251.5 million stake in Sotheby's was equivalent to just over 14% of outstanding common shares.

The New York-based fund did not exit any of its consumer holdings during the period.

The cumulative dollar value of Third Point's consumer holdings rose nearly 17% to $1.45 billion as of March 31, the second-highest sector total behind the $3.38 billion the fund had invested in healthcare stocks.

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