Third Point discloses new position in DSV, touts Cinemark

In the firm’s Q3 investor letter, a copy of which was seen by The Fly, Third Point stated: “During the Third Quarter, we initiated a new position in the Danish freight forwarder DSV. DSV has come a long way from its origins as a Nordic road-hauler to become the world’s third largest freight forwarder, with a formidable track record of consolidating the fragmented global freight forwarding industry. We believe the company has an impressive culture that is systems-driven and returns-focused. DSV has generated an approximately 20% EPS CAGR over the past 10 years and is widely recognized as the best-in-class operator, with industryleading growth and profit margins. DSV emerged as the leading bidder in the auction of DB Schenker, a subsidiary of German state-owned Deutsche Bahn AG, and one of its largest competitors. DB Schenker is similar in size to DSV but only half as profitable. We believe the integration and synergy capture expected from this combination will follow a proven playbook and drive earnings accretion in excess of 30%.” The firm also stated in the letter: “Earlier this year we took a stake in Cinemark, the third largest movie theater chain in the U.S. We believe Cinemark is poised for underappreciated growth over the next few years as the supply of theatrical releases rebounds from pandemic- and strike-related headwinds. In addition, we believe Cinemark will gain share from undercapitalized competitors… Given the significant recovery in box office, potential for continued share gain and high operating leverage of the business, we think Cinemark can generate over $4 of FCF/share in 2026, which is meaningfully higher than pre-pandemic levels and should grow in the following years.”