Third Point Raises Stakes in US Steel, Buys Kenvue, Exits Tesla

Daniel Loeb's hedge fund Third Point has made significant portfolio adjustments in the first quarter of 2025, including large new stakes in U.S. Steel and Kenvue, signaling bets on industry consolidation and strategic overhauls to enhance shareholder value. Third Point acquired 3.63 million shares in U.S. Steel, with analysts generally optimistic about the stock's modest upside potential, despite some valuation concerns. The fund also initiated positions in Nvidia, CoStar, and Casey’s, while exiting holdings in Tesla, Meta Platforms, Danaher, Ferguson, and Thermo Fisher, reflecting a shift in investment tactics. Loeb's stake in Kenvue is part of broader calls for divestments or sales to improve returns, indicative of a sectoral reassessment in steel and healthcare. Meanwhile, the fund reduced positions in Amazon and Microsoft but increased stakes in companies like Apollo and Live Nation. These moves highlight Third Point's strategic reallocation toward companies with perceived growth or restructuring potential, amid a dynamic market environment.