Third Point, the activist hedge fund firm founded by Daniel Loeb, acquired a new stake in Danish freight forwarder and logistics company DSV A/S during the third quarter, predicting “significant upside” for the company, according to a report by Reuters.
In a recent letter to investors seen by Reuters, Loeb highlighted that DSV is poised to benefit from its planned acquisition of Schenker, the logistics arm of Germany’s Deutsche Bahn, and a forthcoming joint venture with Saudi Arabia.
The joint venture aims to offer end-to-end supply chain management and develop logistics and transport infrastructure, which, according to Loeb, could boost DSV’s earnings power by 15% by 2028. Additionally, the Schenker acquisition is expected to drive earnings growth of more than 30%, Loeb wrote.
Loeb expressed confidence in DSV’s new CEO, Jens Lund, who stepped into the role earlier this year after serving as Chief Financial Officer. Loeb praised Lund for being “laser-focused on creating shareholder value,” and noted that the company’s strategy could include further acquisitions, a key factor in DSV’s growth from a small trucking business to a global logistics giant.
According to Loeb, DSV stands to increase revenue through value-added services like customs clearance, load consolidation, and problem resolution. He projected that the company could earn more than 100 DKK per share by 2027, positioning it as one of Europe’s top-performing companies.
Third Point’s TP Offshore Fund gained approximately 4% in the third quarter and has delivered a 14% return year-to-date. Since its founding in 1996, the TP fund has generated an average annual return of 13.1%, outperforming the broader S&P 500 index’s annual return of 9.6%.
