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Daniel Loeb Buys JPMorgan, Time Warner, Bank of America

- By Tiziano Frateschi

Daniel Loeb (Trades, Portfolio) founded Third Point LLC in 1995 and leads the firm's research activities, portfolio and risk management. During the fourth quarter of 2016, he bought shares in the following stocks:


The investor purchased 5,250,000 shares of JPMorgan Chase & Co. (JPM), establishing a postion. The trade had an impact of 4.45% on the portfolio.

It is a financial services company and banking institution. Its segments are Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset Management.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 9.17% and return on assets (ROA) of 1.01% are outperforming 56% of the companies in the Global Banks - Global industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 11.31 is above the industry median of 1.88.

The largest shareholder of the company among the gurus is Dodge & Cox with 0.75% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.66%, Barrow, Hanley, Mewhinney & Strauss with 0.62%, Chris Davis (Trades, Portfolio) with 0.47%, Ken Fisher (Trades, Portfolio) with 0.39% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.29%.

The guru bought a 17,500,000-share stake in Bank of America Corp. (BAC), giving it 3.8% portfolio space.

It is a bank holding and a financial holding company. Through its subsidiaries, it provides banking and non-banking financial services and products throughout the United States and in select international markets. Fourth-quarter total revenue, net of interest expenses, grew 1% and net interest income (NII) increased 6%. The company reported a decrease of 2% for non-interest income.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of 5.62% and ROA of 0.76% are underperforming 71% of the companies in the Global Banks - Global industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.66 is below the industry median of 1.88.

Dodge & Cox is the largest shareholder of the company among the gurus with 1.88% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.72%, Fisher with 0.36%, Hotchkis & Wiley with 0.35%, Bill Nygren (Trades, Portfolio) with 0.33%, First Pacific Advisors (Trades, Portfolio) with 0.27% and Steven Romick (Trades, Portfolio) with 0.25%.

Loeb purchased 3,000,000 shares of Time Warner Inc. (TWX) with an impact of 2.84% on the portfolio.

Time Warner is a media and entertainment company. It operates its business in four segments, including Turner, Home Box Office, Warner Bros. and Time Inc. During the fourth quarter, revenues grew 11% and operating income increased 22%. The company reported a growth of 25% for adjusted operating income.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 16.36% and ROA of 6.08% are outperforming 74% of the companies in the Global Media - Diversified industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.06 is below the industry median of 1.27.

The largest shareholder of the company among the gurus is Dodge & Cox with 4.18% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.52%, Spiros Segalas (Trades, Portfolio) with 0.5%, David Einhorn (Trades, Portfolio) with 0.43%, David Abrams (Trades, Portfolio) with 0.39%, Loeb with 0.39%, First Eagle Investment (Trades, Portfolio) with 0.37% and John Paulson (Trades, Portfolio) with 0.37%.

The investor increased his position in Humana Inc. (HUM) by 71.43%. The trade had an impact of 2% on the portfolio.

Humana is a health care company that offers insurance products and health and wellness services. Its segments include Retail, Employer Group and Healthcare Services.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 5.53% and ROA of 2.22% are outperforming 74% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.90 is below the industry median of 1.02.

Larry Robbins (Trades, Portfolio) is the largest shareholder of the company among the gurus with 4.34% of outstanding shares, followed by Loeb with 1.61%, Jim Simons (Trades, Portfolio) with 0.98%, Andreas Halvorsen (Trades, Portfolio) with 0.49%, Jeremy Grantham (Trades, Portfolio) with 0.38% and Pioneer Investments with 0.3%.

The guru bought 3,000,000 shares of PrivateBancorp Inc. (PVTB) with an impact of 1.6% on the portfolio.

The company, through its subsidiaries, provides customized business and personal financial services to middle market companies as well as business owners, executives, entrepreneurs and families. Fourth-quarter total deposits increased $1.7 billion from a year ago and the net interest margin was 3.23%, compared to 3.25% last year.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 11.35% and ROA of 1.3% are outperforming 71% of the companies in the Global Banks - Regional - U.S. industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.09 is below the industry median of 1.88.

Another notable shareholder of the company among the gurus is NWQ Managers (Trades, Portfolio) with 1.41% of outstanding shares, followed by Simons with 1.09%, RS Investment Management (Trades, Portfolio) with 0.8%, Paul Tudor Jones (Trades, Portfolio) with 0.43%, Mairs and Power (Trades, Portfolio) with 0.06% and Mario Gabelli (Trades, Portfolio) with 0.04%.

Loeb purchased 1,375,000 shares of Honeywell International Inc. (HON). The trade had an impact of 1.56% on the portfolio.

Honeywell is a technology and manufacturing company, serving customers with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products and chemicals.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 25.27% and ROA of 9.17% are outperforming 86% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.50 is below the industry median of 0.97.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.04% of outstanding shares, followed by PRIMECAP Management with 0.56%, Mairs and Power with 0.29%, Gabelli with 0.23%, Pioneer Investments with 0.18%, Grantham with 0.16% and Fisher with 0.05%.

The guru bought 1,000,000 shares of Anthem Inc. (ANTM) with an impact of 1.41% on the portfolio.

It is a health benefits company that offers a spectrum of network-based managed care plans to the large and small employer, individual, Medicaid and Medicare markets. Fourth-quarter adjusted net income was $1.76 per share, up from adjusted net income of $1.14 per share in the prior-year quarter. Net income was $180.9 million, or 68 cents per share, which included net negative adjustment items of 46 cents per share.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. While the ROE of 10.23% is underperforming the sector, the ROA of 3.87% is outperforming 56% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.26 is below the industry median of 1.02.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 3.05% of outstanding shares, followed by Robbins with 2.22%, Hotchkis & Wiley with 1.38%, Vanguard Health Care Fund (Trades, Portfolio) with 1.33%, Dodge & Cox with 1.14%, First Eagle Investment with 1.07%, T Rowe Price Equity Income Fund with 0.67% and Simons with 0.64%.

Loeb bought 400,000 shares of Goldman Sachs Group Inc. (GS) with an impact of 0.94% on the portfolio.

The company is involved in investment banking, securities and investment management. Its segments include Investment Banking, Trading and Principal Investments, Asset Management and Securities Services.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. While the ROE of 8.16% is outperforming the sector, the ROA of 0.85% is underperforming 56% of the companies in the Global Capital Markets industry. Financial strength has a rating of 5 out of 10 with a cash-debt ratio of 0.49.

The largest shareholder of the company among the gurus is Dodge & Cox with 3.56% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 2.75%, Fisher with 0.49%, Nygren with 0.43%, Richard Pzena (Trades, Portfolio) with 0.37%, Hotchkis & Wiley with 0.27% and Pioneer Investments with 0.24%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.