Loeb’s Third Point built stake in DSV in Q3, sees ‘significant upside’

By Svea Herbst-Bayliss

NEW YORK (Reuters) – Billionaire hedge fund manager Daniel Loeb told investors on Thursday that his firm Third Point built a new stake in DSV A/S during the third quarter and he sees “significant upside” for the Danish freight forwarder and logistics company.

DSV will benefit from its planned acquisition of Schenker, the logistics arm of German state rail operator Deutsche Bahn, and a planned joint venture between DSV and Saudi Arabia, Loeb wrote in a letter to investors seen by Reuters.

The joint venture, which will provide end-to-end supply chain management and develop transport and logistic assets, should help grow the company’s earnings power by 15% by 2028, the letter said. The combination with Schenker should help drive “earnings accretion in excess of 30%,” he wrote.

Loeb also extended support to the company’s new CEO, calling Jens Lund, who moved into the top job earlier this year after having worked as chief financial officer, “laser-focused on creating shareholder value.”

Lund has signaled that more acquisitions could be on the horizon. Acquisitions and mergers have helped grow DSV from a small trucking company into a global transport and logistics company.

DSV could earn more revenue from value-added services including customs clearance, load consolidation and intervention when problems occur, the letter said. “We believe DSV can earn more than 100 DKK per share in 2027 and see significant upside for one of Europe’s best companies.”

Third Point’s TP offshore fund gained roughly 4% during the third quarter and has returned 14% since the start of the year. Since the firm’s founding in 1996, the TP fund has gained an average 13.1% a year compared with a return of 9.6% a year for the broader .