Dan Loeb's Third Point Sells PRQ Equity and Debt


We have just obtained Daniel Loeb’s Third Point LLC second quarterly letter. Loeb has approximately $8.7 billion under management. In the letter, Loeb discusses Europe and various equity and credit positions the hedge fund holds. Loeb does not mention his fourth largest position, Chesapeake Energy anywhere in the letter. Below are some brief excerpts followed by the full letter in scribd:


Long Equity: Yahoo! Inc. (NASDAQ:YHOO) Update

Third Point’s investment in Yahoo! Inc. (NASDAQ:YHOO) appreciated 4% during the second quarter. Due to
Yahoo! Inc. (NASDAQ:YHOO) ’s concentrated size in our funds, this modest appreciation still made it the biggest
winner for the period.  We were pleased to have favorably resolved the proxy contest we commenced in Q1.
Following a subsequent kerfuffle involving misstated academic records of its then?CEO and
a now former board member, Yahoo!’s directors determined that it was in the best
interests of the Company to invite our nominees Daniel Loeb, Michael Wolf, and Harry
Wilson onto the board.

Long Equity: Delphi Automotive PLC (NYSE:DLPH) Update
We have owned Delphi Automotive PLC (NYSE:DLPH) since purchasing its DIP loan facility in June of 2009. Delphi has
been a core position of 2?5% throughout the past three years as distressed debt, post-reorg  equity, post-IPO locked up equity and since March, as unrestricted common stock trading on the NYSE. Accordingly, Delphi is a good example of a long term investment across the  arc of the distressed cycle. Despite negative Q2 stock performance, Delphi is +33% in 2012,  and has been the best performing Auto Supplier (or OEM) in a group where ~50% of  companies are down for the year.

Long Equity and Debt: Progress Energy Resources Corp. (PINK:PRQNF) (TSE:PRQ)
We initiated a position in Progress Energy Resources Corp. (PINK:PRQNF) (TSE:PRQ) , a Canadian mid?cap E&P
company based in Calgary, Alberta, early in 2012 after the significant sell?off in natural gas  prices and natural gas-related equities. Progress Energy Resources Corp’s primary asset is an 825,000 net acre  position in the unconventional Montney gas play in British Columbia.

2012 Third Point Q2 Investor Letter TPOI