Dan Loeb's Third Point Exits Disney (DIS) Position

May 17, 2022 8:06 AM EDT

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Hedge fund Third Point Management exited its position in Walt Disney (NYSE: DIS) in the first quarter, just two years after the firm first bought shares in the media giant.

According to a regulatory filing Monday, Third Point offloaded 2 million shares of Disney, a move that came after a series of sales in the fourth quarter.

Last year, Third Point said its bet on Disney was reaping the rewards, through the firm urged the management to adopt "all-you-can-eat approach to its direct-to-consumer offering."

Third Point founder Daniel Loeb told investors earlier this month that the firm has adopted a more defensive stance during the first three months of the year and liquidated numerous equity positions.

The new filing also showed that Third Point exited its position in home goods retail company RH (NYSE: RH), department store chain Burlington Stores (NYSE: BURL), as well as AES Corp (NYSE: AES).

Shares of RH are down 48% year-to-date, while Burlington’s shares dropped 40% during the same period. Shares of AES Corp are down 18% since the start of the year.

Just a few months after raising its stake in Amazon (NASDAQ: AMZN), Third Point also trimmed its exposure to the e-commerce giant by 92% to just 17,500 shares at the end of March.

Loeb told investors in January that Tiger increased its exposure to Amazon, saying that the new management at the company would help the company progress. Loeb also said that the increasingly defensive approach would allow the fund to weather the significant market selloff after sustaining an 11.5% loss in the first quarter.

By Senad Karaahmetovic

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Daniel Loeb, Third Point LLC, Senad Karaahmetovic