Third Point just published its second quarter 2017 investor letter.
Dan Loeb has stepped back from the "Trump Trade":
In April’s investor letter, we noted that actions out of Washington would be delayed or even denied, but explained that we remained fully invested because we believed that the emergence of synchronized global growth was more important than the fading “Trump Trade”.
We were correct on this point and during the second quarter, we reduced investments in bank financials, exited reflationary macro trades, and reoriented the portfolio towards investments in companies that benefit from low inflation. Europe, which we highlighted as a source of opportunity in our Q1 Letter, has been a bright spot.
The letter discusses portfolio holding Baxter International (BAX).
The letter also discusses Alibaba (BABA) and BlackRock (BLK):
BlackRock is valued like a traditional asset manager but it has much greater potential for structural revenue growth and operating margin expansion. Previous headwinds like USD strength have now become tailwinds, helping recent performance, but we are much more excited that higher-margin, higher-multiple businesses like iShares and Aladdin will become almost 2/3 of BlackRock’s earnings power within 3 years.
You can read the full letter here: