Dan Loeb's Third Point Initiated New Stake In Sears Holdings (SHLD); Sold Out of Flamel (FLML)

Third Point, led by outspoken Dan Loeb, initiated a new 650,000 share stake in Sears Holdings (Nasdaq: SHLD). Third Point did own it awhile ago, but he just bought it again sometime prior to September 30th. Loeb may be thinking that Lampert will drive Sears' stock price up through liquidating some of the real estate and Sears intrinsic value is now worth more than what it is trading for today. Loeb is very smart, conducts extensive research and is well-followed on Wall Street. Arguably, he is one of the top hedge fund managers on the street.

However, I do hear from some funds that Loeb sometimes gets in a over his head with his recent biotech investments. For example, Dan Loeb and Third Point bought a significant stake (over 5%) in Flamel Technologies(Nasdaq: FLML) in the mid-teens and within a month it was down close to 50%. A few hedge funds were delighted when Loeb bought shares of Flamel because they took the opposite end of the trade and shorted the stock. Those funds won on that trade, but let's wait and see see what happens with the Sears trade.

You can see Loeb's most recent changes to his holdings here.

Please feel free to contact me with any comments or questions.
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