- Billionaire hedge fund manager Dan Loeb has joined Warren Buffett and Marc Benioff as a shareholder of Snowflake.
- The third point from Loeb, who counts Amazon and Alibaba among his biggest headlines, revealed a position in Snowflake in his latest portfolio update.
- Buffett’s Berkshire Hathaway and Benioff’s Salesforce both bought Snowflake shares in private placements immediately after their IPO last month.
- Snowflake is a natural fit for Third Point and Salesforce portfolios, but it’s an unusual bet for Berkshire given Buffett’s past warnings against tech stocks and IPOs.
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Billionaire investor Dan Loeb followed Warren Buffett and Marc Benioff to Snowflake, the cloud-based data platform that went public last month and saw its share price more than double on its first day of trading.
Loeb’s Third Point fund counted Snowflake among its winning investments in September, according to its latest portfolio update. However, he did not disclose the size of his stake or the date of its purchase.
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Snowflake contributed an 11.7% gain for Third Point’s portfolio in the last quarter, surpassing the 8.9% gain of the S&P 500 during the same period. Still, the fund’s 3.6% gain for the year through September followed the benchmark’s 8.9% rally.
The software company is a natural fit for Third Point, which held stakes in Alibaba, Amazon, Adobe, Salesforce, Facebook and other tech stocks at last count.
The same goes for Salesforce Ventures, the investment arm of Benioff’s enterprise software giant, which backed Snowflake ahead of its IPO and bought $ 250 million of its shares as part of a placement. private after its IPO.
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In contrast, Berkshire’s decision to invest around $ 735 million in Snowflake surprised many commentators. Aside from his massive stake in Apple, Buffett’s portfolio focuses on financial, industrial, and consumer services rather than technology.
Buffett also warned of IPOs and loss-making tech companies with sky-high valuations in the past, making the Snowflake bet a major anomaly, even though Todd Combs, one of his deputies, was responsible for it.