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Dave Loeb Sells Yahoo Stock
One of the most heavily traded stocks over the past few years has been Yahoo, while the company seemed to be struggling to compete with Google and other companies, it has gone through a considerable resurgence the past few years. One of the most significant investors in Yahoo has been the Third Point hedge fund, which has acquired nearly 60 million shares under the leadership of Dave Loeb. The hedge fund started acquiring shares a few years ago when they were trading around $12 per share. Since then the share price has skyrocketed to over $29, a 125% return over the past three years.
While the hedge fund has made a lot of money investing in Yahoo, they now appear ready to diversify a but more. The fund is selling 40 million if the shares back to Yahoo at a price if $29 per share, which was Friday's closing price. Loeb and the hedge fund will now be left with another 20 million share, but will have about $1.2 billion in excess liquidity to invest elsewhere.
Overall, the hedge funds investment in Yahoo stock represented about a 4% overall share of the total market capitalization. After news of the transaction came out, the market and investors have responded negatively. Shares of the stock have declined to around $28 per share, which represents a 4% overall decline. While it may be a short term decline, the company believes that this will be a good long term move for Yahoo and it's investors. The dip represents a buying opportunity for those that have been looking for a good entry point.
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