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The billionaire investor who founded Third Point a quarter century ago also told clients in a letter seen by Reuters that he bought a stake in The Walt Disney Co (N:DIS) where streaming services are creating the company’s “biggest market opportunity ever.”
“Disney’s dominant position in the global media landscape sets up the company to take a meaningful chunk of the growing DTC streaming market, shown by the early success
of Disney+,” the letter said. Loeb said revenue could grow to $500 billion over a growing market of 750 million broadband homes outside of China.
Loeb said Third Point bought great companies at attractive prices and is betting on Disney which is in the throes of a big change. The investments reflect change at Third Point as well where Loeb, who founded the firm 25 years ago, took back sole control of the portfolio in May following double-digit losses earlier in the year amid panic selling sparked by the Coronavirus.
The firm’s Third Point Offshore portfolio climbed 10.8% in the second quarter and gained more in July to trim the year-to-date loss to 3.7% at the end of July.
