Third Point bets on Rocket Companies, Informa, Casey's General Stores in Q2, letter says
In a letter to Third Point investors seen by Reuters, Loeb wrote that the firm's flagship offshore fund returned 7.5% during the second quarter, when the new investments were initiated.
The firm also "re-initiated" a position in Nvidia (NVDA.O), opens new tab, reasoning the AI chip giant had been beaten down by tariff worries and recession fears, among other things, earlier in the year but will continue to climb. Its stock price has gained nearly 30% this year.
Third Point bought its stake in Rocket Companies after the company said it would buy home loan service provider Mr. Cooper Group for $9.4 billion. "We view the combination of Rocket and Mr. Cooper as a transformative, synergy-rich merger between two technology leaders in the otherwise parochial and cost inflationary mortgage industry," Loeb wrote. Mr. Cooper's servicing portfolio could feed Rocket's refinancing origination machine.
Casey's General Stores, the third-largest convenience store chain in the United States by store count and the fifth-biggest pizza chain in the country, appealed because its food is consistently good, it manages to retain its staff, and it has done some smart deals to expand its footprint.
"In Casey's we see a world-class management team with a differentiated mousetrap and a decade of profitable growth ahead of them," the letter said.
Informa, which runs events like investment conference SuperReturn, the Dubai Air Show and the Monaco Boat Show, has a smart Middle East strategy and could have compound earnings at a double-digit rate for many years, Loeb said.
Loeb also described the winners and losers during the quarter, citing his bet on U.S. Steel, which was finally sold to Nippon Steel after months of political and regulatory scrutiny, as one of the firm's top five winners. Among the losers was a bet on consumer health company Kenvue (KVUE.N), opens new tab, which makes Tylenol and Band-Aids, the company in July replaced its CEO, giving investors hope the stock price can now move higher.
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