daniel-loeb

ValueWalk yesterday posted Third Point Avenue’s 2011 shareholder letter. The fund is managed by famous outspoken, event-driven, value investor-Daniel (Dan) Loeb. The letter was released two days ago and included a lot of information about Loeb’s views on the market, which securities he likes, and some politics as well.

We have just obtained Third Point’s february stat sheet, which includes more information not covered in the shareholder letter.

As mentioned the fund was up 4.9% for YTD (ending February 29th). The annualized return since inception in 1996 is 17.5%, compared to S&P 500 return of 5.8%. Furthermore, Loeb has crushed the index while using less risk. The sharpe ratio of the fund is 1.27, and annual standard deviation is 300 basis points below the index.

 

The flaghship hedge fund, Third Point Offshore Fund, Ltd. has 4.7 billion of assets under management (AUM). Third Point LLC has a total AUM of 8.9 billion. The firm is getting closer to the $10 billion mark.

The hedge fund is 36.7% net long in equities. Loeb has drastically increased the fund’s investments in credit and mortgage backed securities since the market had a large drop in October 2011.

Loeb is more bullish on the US than other countries. The fund has zero net exposure to Europe, the Middle East and Africa. The fund is net short 1% on Asian stocks. In the US, Loeb’s fund has 96% long positions and 30% short positions, for a net exposure of 66%.

Below are the top holdings of the fund across asset classes and geography, in descending order:

Yahoo! Inc. (YHOO)

Gold (GLD)

Eksportfinans ASA

Delphi Corporation (DLPH)

Apple Inc. (AAPL)