Dan Loeb

Third Point’s assets under management (AUM) have hit a record of $10 billion, according to a shareholder letter. The value oriented hedge fund, which is run by Dan Loeb, is up 17.0% year to date. The hedge fund was up 2.9% in the month of November.

Total AUM in the prior month was at $9.6 billion. The hedge fund operator’s flagship  fund now has total assets of slightly over $5 billion, as opposed to $4.87 billion last month.

Net equity exposure decreased from 42% in October, to 38% in November. Loeb’s fund has net credit exposure of 27.7% and ‘other’ at 4.9%. In the macro sector, which Loeb added earlier this year, and has not removed (readers can see the contrast with May’s sheet), net exposure is -5.8%.

Many value investors state that the macro environment has led to high correlations in asset classes (equities have an 82% correlation to the S&P 500 according to BAML). As a result, some value oriented investors have begun to incorporate some macro factors. Macro consists of Gold, Government, and tail risk (black swan) strategies. Loeb is 5.0% net long gold and 11% net short Government. We believe that this position is a short on US Government debt, as we explained recently.

The biggest winners for the month were, Greek Government Bonds (which we believe is a long position), Yahoo! Inc. (NASDAQ:YHOO), Delphi Automotive PLC (NYSE:DLPH), Aveta Inc. (PINK:AVTQZ), and Ally Financial (Mult Sec).

The biggest losers for the month in descending order were, American International Group, Inc. (NYSE:AIG),  Apple Inc. (NASDAQ:AAPL), two anonymous short positions, and Liberty Global Inc. (NASDAQ:LBTYA).

The top five positions for Third Point are, Yahoo! Inc. (NASDAQ:YHOO), Greek Government Bonds, American International Group, Inc. (NYSE:AIG), Gold, and Delphi Automotive PLC (NYSE:DLPH).

Interestingly, Apple, which was a top holding of Dan Loeb, is not off the top five list.

Disclosure: no position in any securities mentioned


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