Loeb Dumps Nvidia and Broadcom, Doubles Down on Alphabet
Billionaire investor Dan Loeb's investment firm, Third Point, made significant changes to its portfolio in the second quarter. Loeb sold off all of his shares in Nvidia (NVDA), Broadcom (AVGO), and Meta Platforms (META) in June.
The sales were likely due to profit-taking, as Loeb's fund has a history of short-term trading. In fact, the average holding period for top-20 stocks in the fund is just nine months.
Loeb dismissed concerns about an AI bubble, saying that perceived high valuations for Broadcom and Nvidia were not the reason for the sales. Instead, he pointed to the potential for profit-taking as the explanation.
In contrast to the sales of these three stocks, Loeb increased his stake in Alphabet (GOOGL) by nearly 500% during the quarter. He added 850,000 shares of Class A stock, bringing the total to a significant holding.