Third Point Cut 15.8M PG&E Shares and Doubled Union Pacific to $419M: Inside Loeb's Q4 2025 Railroad Pivot

Third Point LLC filed its Q4 2025 13F on February 17, 2026, revealing a sweeping portfolio rebalance that rewrites the fund's sector narrative. Dan Loeb sold 15.8 million shares of PG&E — a 32% reduction in the position that defined his most famous activist campaign — while doubling Union Pacific to $419 million with a 107% share increase. The result: a $7.27 billion, 44-position portfolio that's pivoting hard from utility activism to railroad infrastructure conviction.

TL;DR

• AUM: $7.27 billion (Q4 2025), down 19.1% from $8.99B in Q3
• Holdings: 44 positions (down from 46 in Q3)
• PG&E trim: Sold 15.8M shares (-32%), still #1 at $551M (7.58%)
• UNP doubled: Added 935K shares (+107%), now $419M (5.76%) — biggest single add
• Railroad sleeve: UNP + NSC + CSX = $719M (9.9% of portfolio)
• New positions: Chipotle ($175M), Alibaba ($121M), Spotify ($58M), and others
• Big tech trimmed: Amazon -23%, Microsoft -16%; NVIDIA held steady
• Energy/utility: PCG + CEG + VST = $881M (12.1%) — still significant but shrinking

Q4 2025 Portfolio Snapshot: The Top 15 Holdings

Third Point's top 15 positions account for roughly 73% of the $7.27B portfolio. The two co-leaders — PG&E and NVIDIA — are effectively tied at 7.6% each, a notable change from Q3 when PG&E dominated at over 10%.

The portfolio reads like a textbook Loeb construction: a mix of activist legacy positions (PCG, TDS, NSC), high-conviction secular themes (NVDA, AMZN, MSFT), and emerging catalytic situations (UNP, CMG, BABA). The 44 holdings spread across at least 8 distinct sectors, with no single sector exceeding 26%.

The PG&E Unwind: Exiting the Decade's Most Famous Activist Bet

The biggest story is the PG&E reduction. Third Point's involvement with PG&E Corp stretches back to 2017-2018, when Loeb built a massive position during the California wildfire liability crisis and subsequent bankruptcy. It was one of the highest-profile activist plays of the decade — Loeb pushed for management changes, helped shape the restructuring plan, and rode the stock from bankruptcy-era lows to its current $16+ range.

In Q4 2025, Loeb sold 15.8 million shares, reducing the position from roughly 50.1 million shares to 34.3 million shares — a 32% cut. At Q4 prices, that's approximately $250 million in PG&E stock sold in a single quarter.

The position remains #1 at $551 million (7.58%), but the direction is clear: Loeb is methodically taking profit on a play that has largely run its course. PG&E's wildfire liabilities are largely resolved, the management team has been replaced, and the stock has re-rated. The activist thesis is complete — what remains is position management.

This is a pattern Loeb has repeated throughout his career: build aggressively, push for change, then harvest methodically once the catalyst plays out. Expect further PG&E reductions in coming quarters.

Union Pacific Doubled: The Railroad Conviction Play

While PG&E was being unwound, Union Pacific was being built at an extraordinary pace. Loeb added 935,000 shares in Q4, a +107% increase that more than doubled the position to $419 million (5.76% of portfolio). This was the single largest percentage increase among Third Point's top 20 holdings.

The railroad thesis doesn't stop at UNP. Third Point also holds:

• Norfolk Southern (NSC): $282M (3.87%) — though trimmed 41% in Q4, likely profit-taking after a 2025 rally
• CSX Corp: $18M (0.25%) — a small starter position that could be scaled

Combined, the three railroads total $719 million — 9.9% of the portfolio. This is a deliberate sector overweight. The investment case for railroads in 2025-2026 rests on several pillars:

1. Pricing power: Class I railroads operate a duopoly structure in their respective geographies, enabling consistent above-inflation price increases
2. Precision Scheduled Railroading (PSR): Operating ratio improvements continue driving margin expansion, with UNP targeting sub-58% OR
3. Reshoring tailwind: US manufacturing reshoring increases domestic freight volumes — railroads capture the longest-haul segments
4. Activist angle: Loeb previously pushed for board changes at NSC; the railroad industry's oligopolistic structure makes it responsive to governance pressure

The UNP doubling while NSC was trimmed 41% suggests Loeb is concentrating his railroad conviction into UNP specifically, possibly viewing it as the higher-quality operator or the one with more upside from current levels.

New Positions: Chipotle, Alibaba, and Spotify

Third Point opened several new positions in Q4, with the three most significant being:

Chipotle Mexican Grill (CMG) — $175M, 2.40%

Chipotle entered as a mid-sized position at 4.7 million shares. The stock has been in a transition period since the departure of former CEO Brian Niccol (who left for Starbucks in mid-2024). Loeb's entry suggests he sees the post-Niccol valuation reset as an opportunity, with Chipotle's unit economics and expansion runway largely intact regardless of who sits in the corner office.

Alibaba Group (BABA) — $121M, 1.66%

Alibaba is a contrarian bet on Chinese internet at a time when most US institutional investors are reducing China exposure. The position aligns with David Tepper's Appaloosa, which held BABA as a core position in Q4. Loeb's Alibaba thesis likely centers on the post-breakup restructuring (the company has been spinning off business units) and a depressed valuation relative to cash flow.

Spotify Technology (SPOT) — $58M, 0.80%

Spotify is a smaller position but notable — the company delivered its first full year of consistent profitability in 2025, with margins inflecting sharply higher after years of losses. At $58M, this is likely a starter position that Loeb will scale if the margin story continues.

Big Tech: Trimming Amazon and Microsoft, Holding NVIDIA

Third Point's mega-cap tech positions tell a nuanced story:

• NVIDIA: +100K shares (+4%) to $550M — Loeb is adding, not trimming, the AI infrastructure leader
• Amazon: -645K shares (-23%) to $500M — significant profit-taking after a strong 2025
• Microsoft: -175K shares (-16%) to $447M — trimming but maintaining a large position

The combined big tech allocation (NVDA + AMZN + MSFT + TSM) is $1.60B — still 22% of the portfolio. Loeb isn't abandoning tech; he's selectively harvesting gains from the most extended names while adding to NVIDIA, which he apparently views as having more runway given data center capex cycle acceleration.

AUM History: The Q4 Contraction

Third Point's AUM dropped 19.1% from $8.99B (Q3) to $7.27B (Q4). This is the largest single-quarter decline since Q1 2022 (when the fund fell from $14.3B to $7.7B amid the broader market selloff).

The Q4 contraction reflects a combination of factors: the PG&E sell-down ($250M+ in proceeds), Amazon and Microsoft trims (combined $200M+ in sales), the NSC reduction, and likely some client redemptions. Unlike Lone Pine's deliberate portfolio flush, Third Point's AUM decline appears to be driven by active position management rather than a wholesale restructuring.

Sector Allocation: From Utility Activist to Diversified Catalyst Fund

The sector mix reveals Third Point's evolution. Technology remains the largest allocation at 26%, but it's closely followed by Consumer (15.3%), Financials (13.3%), Energy/Utilities (12.1%), and the Transport/Railroad sleeve (9.9%). No single sector dominates.

The most notable shift is the railroad/transport allocation rising from minimal to nearly 10% in just two quarters. This, combined with the PG&E unwind, signals a clear rotation: Loeb is moving from completed activist situations (utilities) toward new catalyst-driven investments (railroads, consumer restructurings, EM internet).

The Hidden Gems: TDS, Carpenter Technology, and MasTec

Several mid-portfolio positions deserve attention:

• Telephone and Data Systems (TDS) at $274M (3.76%) — a legacy telecom play where Loeb has been pushing for a strategic review of the company's valuable wireless spectrum and tower assets. TDS trades at a significant discount to the sum-of-its-parts, making it a classic Loeb-style activist target.
• Carpenter Technology (CRS) at $247M (3.40%) — specialty alloys for aerospace and defense. This is the same conviction that appears in Lone Pine's Q4 portfolio at $413M. When two major funds independently build the same specialty industrial, it's worth noting.
• MasTec (MTZ) at $201M (2.76%) — infrastructure construction services covering 5G towers, pipelines, and renewable energy. A play on the US infrastructure spending cycle.
• Constellation Energy (CEG) at $168M (2.31%) and Vistra (VST) at $162M (2.23%) — both AI-driven power demand plays, echoing positions held by multiple whale funds this quarter.

What Did Third Point Buy in Q4 2025? (FAQ)

What did Dan Loeb buy in Q4 2025?

Third Point's biggest add was Union Pacific, where Loeb more than doubled his position (+935K shares, +107%) to $419M. New positions include Chipotle ($175M), Alibaba ($121M), and Spotify ($58M). He also increased Brookfield by 33% and CRH PLC by 20%.

Did Dan Loeb sell PG&E in Q4 2025?

Loeb sold 15.8 million PG&E shares (-32%), reducing the position from ~50.1M to 34.3M shares. PG&E remains the #1 holding at $551M (7.58%), but the trend is clearly toward further reduction.

What is Third Point's largest holding?

PG&E Corp at $551M (7.58%), essentially tied with NVIDIA at $550M (7.56%). This is the first quarter where NVIDIA has rivaled PG&E for the top spot — a symbolic shift for a fund historically defined by its utility activism.

How much does Third Point manage?

Third Point's 13F-reported assets are $7.27 billion as of Q4 2025. Total firm AUM (including credit, private, and non-13F strategies) is approximately $21 billion.

Does Third Point own railroad stocks?

Yes. Third Point holds three Class I railroad positions: Union Pacific ($419M), Norfolk Southern ($282M), and CSX ($18M), totaling $719M or 9.9% of the portfolio.

Is Third Point an activist hedge fund?

Yes. Founded by Dan Loeb in 1995, Third Point is one of the most prominent activist hedge funds. Loeb is known for taking large positions and pushing for operational, governance, or strategic changes. Notable activist campaigns include PG&E, Sony, Nestlé, and Bath & Body Works.

Analyst Conclusion

Third Point's Q4 2025 filing captures a fund in transition. The PG&E unwind — selling $250M+ of the position that defined Loeb's decade — is the emotional headline, but the UNP doubling is the forward-looking signal. Loeb is rotating from completed activist situations into new conviction plays: railroads, consumer restructurings (CMG), and contrarian EM bets (BABA).

The $719M railroad sleeve (9.9% of portfolio) deserves particular attention. Railroads are not typical activist targets — they're quality compounders with pricing power and high barriers to entry. This suggests Loeb may be evolving his investment approach, blending activist catalysts with longer-duration quality holdings.

Watch for Q1 2026: if Loeb continues cutting PG&E and scaling UNP/CSX, the fund's identity shift from "utility activist" to "infrastructure-and-catalyst investor" will be confirmed.

Explore the full Third Point filing history and holdings on 13F Insight, or read our Q4 2025 institutional consensus analysis for cross-fund trends.