Third Point’s Dan Loeb revealed that he has dumped almost all of his positions in the so-called Magnificent 7 stocks after their huge run-up that’s been dented this year from the stock market tariff turmoil. “What we have done in the last few months is number one shifted away from those easy sale candidates of stocks that had been the big winners but that are the easiest to sell from a technical standpoint from people who are repatriating their capital and getting out,” Loeb spoke at the Economic Club of New York Tuesday in an interview with CNBC’s Andrew Ross Sorkin . “We sold out of our Mag 7 holdings. Early on we got out of Meta, and reduced our Amazon. We got out of basically all of them. I still have a small Amazon position. I think as a strategy what we’re looking at is event-driven strategies and activism,” Loeb said. The Magnificent 7 — Amazon , Microsoft , Meta , Alphabet , Apple , Nvidia and Tesla — has led the market drawdown in 2025 after a two-year monster run. Tesla has been the worst performer this year, down more than 40%, while Amazon, Alphabet and Apple have all declined about 20%. Concern about AI overspending hit the stocks initially this year, followed by tariffs from President Donald Trump causing investors to further reduce exposure to the names. The popular hedge fund manager said he’s leaning further into credit, especially private credit where he sees “massive” opportunities. Loeb also opined on the recent market turmoil triggered by Trump. He said the sentiment on wall street has switched from a sense of optimism at the start of Trump’s term to a feeling of uncertainty and fear of its potential lasting impact. “I think there will be a residual concern about some of the capriciousness with which some of these issues have been dealt with and confidence in the rule of law, in expectations being met,” Loeb said. “I would not underestimate the resilience of the American economy,” Loeb added, however. Last year, Loeb said investments in the “physical world” were attractive as market narrative was dominated by Mag 7 stocks. He gave examples such as aggregates, nuclear power, life science tools, specialty alloy manufacturers and commercial aerospace manufacturers. — CNBC’s Jacqueline Corba contributed reporting.