Hedge fund billionaire Daniel Loeb slashed his stake in the railroad stocks in his portfolio in the first quarter of FY26.
According to the firm’s Q1 13F filing, reflecting its holdings as of March 31, 2026, Third Point trimmed its holding in Norfolk Southern Corporation (NYSE:NSC) by 90% from about 1.81 million shares in the fourth quarter of 2025 to 100,000 shares in the first quarter of 2026. Also, the investor slashed his stake in Union Pacific Corporation (NYSE:UNP) by 94% to 100,000 shares in the last quarter.
The stake reduction may also reflect the uncertainty around Union Pacific’s proposed $85 billion acquisition of Norfolk Southern.
Notably, last July, Norfolk Southern announced an agreement with Union Pacific to combine in a stock-and-cash transaction. Union Pacific will acquire Norfolk Southern at an implied value of $320 per share. Shareholders are set to receive one share of Union Pacific and $88.82 in cash for each share of Norfolk Southern stock held.
Regulatory scrutiny, including additional information requests and a pause in parts of the Surface Transportation Board review, increased volatility around railroad stocks and merger valuations.
