American Express shares pared losses following the news of the stake by the activist hedge fund. : Daniel Loeb's Third Point Capital added a new stake in American Express, according to an investor letter. "With shares trading at just 12.5X our 2019E EPS, and 11x 2020E EPS, we think markets underappreciate the strategic pivot occurring at Amex and see shares trading above $135 over the next 18 months for a total return of 30 percent upside," stated the letter. American Express is "a franchise that appeared to lose its way in recent years," Loeb said in the letter.