According to a 13F filing, Third Point lowered its position in the Dow Chemical Company (DOW). It sold 5 million shares of the company. As of June 30, 2016, it holds 20 million shares of the company whose market value is $1.1 billion.
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Dow Chemical Company constituted 9.5% of the firm’s portfolio. Third Point constituted 1.8% of Dow Chemical Company’s holdings. Third Point is the seventh-largest investor in Dow Chemical as of June 30, 2016. The largest investor in Dow Chemical is Vanguard Group with 72.4 million shares.
Dow Chemical (DOW) declared its 2Q16 earnings results on July 28, 2016. It reported adjusted earnings per share of $0.95, which beat analysts’ consensus estimate of $0.86. On a year-over-year basis, the company’s EPS rose by 4.4%, while the company’s revenue fell by 7.4%. Read Dow Chemical’s 2Q16 Revenue Falls, Beats Analysts’ Estimates, to learn more.
Third Point’s largest buys in 2Q16 were as follows:
In 2Q16, the firm’s sector allocation was heavily tilted towards the healthcare (XLV), materials (XLB), and communications (VOX) sectors. These three sectors constitute 38.9%, 15.1%, and 11.1% of its portfolio, respectively. The heavy position in healthcare indicates that investors are making investments in the defensive sector. The defensive sector has little correlation with the business cycle. This indicates that the firm is less optimistic about a recovery in the economic activity of the United States (QQQ) (SPY).
You may be interested to read Bill Miller Has a Bullish Outlook on the US Economy for more information.