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Rocket Companies Soars with Transformative Acquisition
4 Aug
Summary
- Rocket Companies acquired Mr. Cooper, expanding its mortgage services
- Rocket's tech-driven approach cuts loan origination time by over 50%
- Third Point Offshore Fund returns -7.5% in Q2 2025 amid market volatility
In the second quarter of 2025, the investment management firm Third Point released its quarterly investor letter, revealing that its Third Point Offshore Fund had returned nearly -7.5% during the period. The quarter began with "Liberation Day," which initially spooked markets, but by the end, sentiment had shifted positively, and markets rebounded.
One of the key highlights in Third Point's letter was its new position in Rocket Companies, Inc. (NYSE:RKT), a fintech holding company that offers mortgage lending, title and settlement services, and other financial technology services. Rocket Companies had recently completed an all-stock acquisition of Mr. Cooper, a transformative move that Third Point believes will strengthen the company's position in the fragmented mortgage origination industry.
Rocket Companies has been a persistent market share gainer, with a 12% share of refinance originations and a 4% share of purchase originations. The company's industry-leading cost and time to originate, driven by continuous reinvestment in technology and automation, have given it a significant advantage. While the average originator takes 45 days to close a refinance loan, Rocket Companies can do it in just 20 days, with over 50% of loans now closing in less than 15 days.
Despite the market volatility, Third Point remains optimistic about Rocket Companies' prospects, citing its differentiated technology-driven approach and the potential synergies from the Mr. Cooper acquisition. As the mortgage industry continues to evolve, Rocket Companies appears poised to capitalize on the shift towards more efficient, tech-enabled solutions.
