Third Point Dunrove has revealed that he dumped almost all of his positions into the so-called magnificent seven stocks after a huge run that has dented from stock market tariff turmoil this year. “What we’ve done in the last few months is a number one shift away from the easy selling candidates of stocks that were big winners, but it’s easiest to sell from a technical standpoint from people repatriated capital and left.” “We sold out of Mag 7 Holdings. We got out of the meta early on, cutting Amazon. We basically got everything. I still have a small Amazon position. The 7 – Amazon, Microsoft, Meta, Alphabet, Apple, Nvidia, Tesla led the market drawdown in 2025 after two years of monsters running. Tesla has dropped more than 40% this year, while Amazon, Alphabet and Apple have dropped more than 40%. Concerns about AI overexpenditures collided with stocks initially this year, followed by tariffs from President Donald Trump, which further reduced the name’s exposure. The manager of a popular hedge fund said he is further leaning towards credit, particularly private credit, which sees “large” opportunities. Loeb also expressed his opinion on the recent market turmoil caused by Trump. He said Wall Street sentiment has switched from an optimism at the start of Trump’s terminology to a sense of uncertainty and fear about its potential lasting effects. “I think there’s the rest of the concerns about some of these issues about the whims that we’re confident in dealing with and expecting the rule of law,” Roeb said. Last year, Loeb said investment in the “physical world” was attractive as the market narrative was dominated by 7 mugs. He cited examples of assemblies, nuclear power, life science tools, special alloy manufacturers, commercial aerospace manufacturers, and more. -CNBC’s Jacqueline Corba contributed the report.
