Tariffs Test Loeb's Financial Picks: Third Point Adjusts Bets As Markets Brace For Economic Blowback

Author: Lekha Gupta | April 08, 2025 01:06pm

Hedge fund manager Dan Loeb had five major financial stocks in the Third Point LLC portfolio, each on the downtrend.

What Happened: Last week, shares of companies within the broader financials sector traded lower as markets reacted to President Trump‘s sweeping tariff announcement.

Here’s a look at some of Loeb’s financial stocks year-to-date:

• Apollo Global Management, Inc. (NYSE:APO): Shares dropped 33.54% compared to Fidelity Disruptive Finance ETF (NASDAQ:FDFF) decline of 17.85% YTD. As of the fourth quarter of 2024, the investor lowered the stake to 400,000 shares from 950,000 shares as of the third quarter of 2024.

• Brookfield Corporation (NYSE:BN): The stock dipped 20.59% vs its peer BlackRock, Inc. (NYSE:BLK) that plummetted 19.92% YTD. Loeb raised the stake to 4,990,000 shares as of the fourth quarter of 2024 from 4,725,000 as of the third quarter of 2024.

• Capital One Financial Corporation (NYSE:COF): Shares were down 14.28% compared to Davis Fundamental ETF Trust Davis Select Financial ETF (BATS:DFNL), which saw a decrease of 9.68% YTD. Third Point acquired 925,000 shares in the fourth quarter of 2024.

• LPL Financial Holdings Inc. (NASDAQ:LPLA): The company’s shares tumbled 13.58% versus Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF (NYSE:GABF) decrease of 15.99% YTD. The investor increased their stake to 655,000 shares in the fourth quarter of 2024 from 485,000 shares as of the third quarter of 2024.

• Discover Financial Services (NYSE:DFS): The stock dived 14.30% compared to iShares Focused Value Factor ETF(NYSE:FOVL) decline of 12.16% YTD. Loeb acquired 640,000 shares in the company in the fourth quarter of 2024.

Why It Matters: U.S. banks and economists are now on recession watch.

JPMorgan analyst Maia G. Crook raised the U.S. recession risk to 60% from 40% last month, citing tariff hikes as the biggest U.S. tax increase in decades.

Last week, Trump argued it was necessary to address the U.S.'s “large and persistent trade deficit,” adding: “Treat us like we treat you.”

The Trump administration proposed steep new tariffs on several countries, including 54% on China, 46% on Vietnam, 36% on Thailand, and 20% on the EU, while maintaining current rates for USMCA-compliant goods from Mexico and Canada.

Read Next:

• These 5 Dan Loeb Portfolio Stocks Are Up Over 30% In The Past Year

Image: Shutterstock

Posted In: APO BLK BN COF DFNL DFS FDFF FOVL GABF LPLA