Hedge fund Third Point increases Shell stake in first quarter, adds long position in Glencore

Source: Zhitong Finance

Wall Street’s prominent hedge fund Third Point increased its position in energy giant $Shell PLC (SHEL.US) $ Shell in the first quarter after the fund first disclosed its Shell stake in October and called for the oil giant to break up. sub-business.

Loeb has held discussions with Shell’s management, board members and other shareholders, according to a letter sent to Third Point investors. In the letter, Loeb wrote that Shell’s portfolio of diverse businesses, from deepwater oil to wind farms, gas stations to chemical plants, was confusing and unmanageable, and that in the long run, if the company changed its corporate structure, will be more successful.

Loeb also said the current geopolitical events underlined the importance of Shell’s LNG business, the world’s largest LNG business outside Qatar, in helping to ensure energy security in Europe.

In addition, Third Point disclosed its new long position in mining company Glencore (ADR) (GLNCY.US) . The hedge fund sees nickel and copper as “key components” in the transition to renewable energy, and the two metals “are experiencing a massive acceleration in demand that will outpace supply growth as miners experience a decade of low returns Capital discipline is still maintained.”

It is understood that Third Point fell 11.5% in the first quarter, and the S&P 500 fell 4.6%. Third Point began investing in oil and gas companies in the first quarter, as well as other materials companies that the fund believes will benefit from inflation, supply shortages and the adoption of electric vehicles.

Among them, the top five companies with Third Point’s first-quarter yields are Shell, $EQT Energy (EQT.US)$ , Macro A, Macro B and $Zendesk (ZEN.US)$ ; the bottom five are ranked by yields this quarter The top companies are $SentinelOne(S.US)$ , $Intuit(INTU.US)$ , $Upstart(UPST.US)$ , $Rivian Automotive(RIVN.US)$ and $COMPAGNIE FINANCIERE RICHEMONT SA(CFRHF) .US)$ .

The fund fell 1% in April, while the S&P 500 and Nasdaq lost 8% and 13%, respectively. Even after the sharp decline, Loeb said, it’s hard to say that the tech industry’s high-growth, high-valuation terminal has bottomed out, especially given that many of these companies rely on stock-based compensation and controversial accounting and reporting techniques.

Editor/Corrine

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