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Follow Loeb's 13-F Disclosure With ETF & Stock Strategies

Sanghamitra Saha

Who doesn’t want to follow investment strategies of billionaire investor Daniel Loeb? His investments have been declared through 13-F filings. Investors should note that hedge funds of a certain size are required to report their long equity filings every quarter, known as 13-Fs. These regulatory filings are out after 45 days of each quarter (per the source), so filings could be changed at the time of writing.

Still, investors could have an idea of what’s hot and what’s not for such great investors. Below we highlight those alterations in portfolios so that retail investors can imitate their strategies either through stocks or ETFs.

Dump Tech & Media Biggies

Loeb’s Third Point LLC left its positions in Alibaba (BABA), Microsoft (MSFT) and Netflix (NFLX) during the fourth quarter. So, investors may be cautious about Alibaba-rich ETFs like Invesco BLDRS Emerging Markets 50 ADR Index Fund ADRE, ProShares Online Retail ETF ONLN, Invesco BLDRS Asia 50 ADR Index Fund ADRA and iShares MSCI China ETF MCHI.

Microsoft-heavy ETFs like Technology Select Sector SPDR Fund (XLK),iShares U.S. Technology ETF IYW andVanguard Information Technology ETF VGT and media ETF Invesco Dynamic Media ETF PBS also has exposure to Netflix.

Have Staples in Your Investing Diet

Third Point stacked up on Campbell Soup CPB by an incremental 3 million shares, marking an increase of 16%. The fund last owned 21 million shares of Campbell Soup, making it the second largest equity long holding. Third Point’s holding marked about 7% of Campbell’s 302 million shares outstanding.

Bet Big on salesforce.com

His other top buys include salesforce.com CRM. This Zacks Rank #1 company is the market and technology leader in on-demand business services. It hails from a top-ranked Zacks Industry (top 19%) and a top-ranked Zacks sector (top 25%).

ETFs that are heavy on salesforce.com are iShares Expanded Tech-Software Sector ETF IGV, First Trust Dow Jones Internet Index FDN, Entrepreneur 30 Fund ENTR and First Trust ISE Cloud Computing Index Fund SKYY (read: Another Cloud Computing ETF in the Making).

Get Rid of PayPal

Third Point cut out its exposure to PayPal (PYPL) by more than half, dumping more than 5 million shares. Notably, PayPal used to be a top five-stock holding. The stock currently has a Zacks Rank #4 (Sell).

Though PayPal Holdings’ non-GAAP earnings of 69 cents per share in the fourth quarter of 2018 surpassed the Zacks Consensus Estimate by a couple of cents and increased 25.5% on a year-over-year basis, net revenues improved 14% to $4.228 billion but missed the Zacks Consensus Estimate of $4.238 billion.PayPal highlighted three difficult areas like lingering ties with eBay, adverse currency translation and slowing global growth (read: eBay vs. PayPal ETFs: Which to Pick After Q4 Earnings?).

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ERShares Entrepreneur 30 ETF (ENTR): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
First Trust Dow Jones Internet Index Fund (FDN): ETF Research Reports
Invesco Dynamic Media ETF (PBS): ETF Research Reports
iShares MSCI China ETF (MCHI): ETF Research Reports
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