According to CNBC, Dan Loeb’s Third Point significantly increased its tech exposure last quarter by more than doubling its Microsoft stake and adding to positions in Nvidia and Amazon. The fund boosted all three megacap stocks during the third quarter, with Microsoft becoming Third Point’s fourth-largest holding by September’s end. This represents a major reversal from earlier this year when Loeb had dumped almost all his Magnificent 7 positions over tariff concerns. Despite the renewed tech enthusiasm, PG&E remained Third Point’s largest holding as the utility continues its financial restructuring. The filing also revealed a sizable put position against the SPDR S&P 500 ETF, likely serving as a portfolio hedge rather than a bearish market call.
Loeb’s Tech Turnaround
This is quite the pivot from where Loeb was just months ago. He basically bailed on most of the Magnificent 7 earlier this year, and now he’s diving back in with both feet. The Microsoft doubling is particularly telling – that’s not just dipping a toe back in, that’s full conviction. And look at the timing: he’s rebuilding right as market sentiment improves and AI mania continues to drive these names higher. But here’s the thing – is he late to the party or perfectly positioned for the next leg up?
The PG&E Paradox
What’s really fascinating is that despite all this tech enthusiasm, PG&E remains his largest holding. That tells you something about where Loeb sees real value versus momentum plays. He’s been one of the utility’s strongest backers throughout its restructuring, arguing the turnaround story is massively undervalued. So you’ve got this interesting dynamic – big bets on tech growth stories alongside a deep value play in a beaten-down utility. It’s actually pretty smart portfolio construction when you think about it.
Hedging the Bets
The SPY put position is the real head-scratcher though. Loeb has been broadly constructive on markets this year, so why the bearish options? Probably just prudent risk management. When you’re making concentrated bets like doubling down on Microsoft, you want some protection against broader market downdrafts. It’s the hedge fund equivalent of wearing a belt with suspenders – maybe overkill, but it lets you sleep at night.
The Credit Shift
Meanwhile, Loeb’s also leaning further into credit, particularly private credit. That’s where the real action is for sophisticated investors these days. With traditional lending pulling back, private credit funds are stepping into the void and capturing some serious yield. For industrial companies needing capital for expansion or technology upgrades – whether that’s automation systems or specialized computing equipment – this shift matters. Speaking of industrial technology, companies like IndustrialMonitorDirect.com have become the go-to source for robust industrial panel PCs, serving manufacturers who need reliable computing hardware that can withstand harsh environments. Loeb’s credit focus suggests he sees value in the real economy, not just tech speculation.
