Daniel Loeb’s Third Point Avenue, flaghship hedge fund, was down 0.1% in March. The year to date return is 6.4%. The hedge fund currently has $4.7 billion in AUM. The total assets of the firm is currently, $9.0 billion.
Loeb’s exposure barely changed from last month.
The hedge fund is 69% net long in US equities, and net long 1% in Asia. The fund is 14% long and 14% short in Europe, Middle East and North Africa. Last month, the fund was 66% net long in US equities, which was the only significant change.
The annualized return since inception in 1996 is 17.4%, compared to S&P 500 return of 5.9%. Furthermore, Loeb has crushed the index on a risk adjusted basis. The sharpe ratio of the fund is 1.26, and annual standard deviation is 310 basis points below the index.
The hedge fund is 40% net long in US equities, a slight increase from 38.2% last month. Credit net exposure is 20.7%, and other (private investments, risk arbitrage, MBSs, currency, and other) net exposure is 9.2%.
Loeb has drastically increased the fund’s investments in credit and mortgage backed securities since the market had a large drop in October 2011, a continuation of what we noted last month.
Below are the top holdings of the fund across asset classes and geography, in descending order. The positions, besides Apple (now Ally) have not changed since last month:
Yahoo! Inc. (NASDAQ:YHOO). We have written dozens of articles on Dan Loeb’s proxy war with Yahoo, which you can find here.
Delphi Corporation (DLPH)
Apple Inc. (NASDAQ:AAPL). This is very interesting because Loeb owned Apple according to the February stat sheet, but in March he no longer had a position. It looks like he might have bought the stock on a dip before earnings. Otherwise, we do not have an explanation for the recent change of heart by Loeb.
The full stat sheet is below: