Dan Loeb’s Third Point posted dull numbers in August, the flagship offshore fund was down 0.7% in last month, trimming year to date return to +15%. August was a tough month for a lot of hedge funds, most notably Pershing Square lost 3.6% in August, wiping out its gains for the year as the fund ended eight months with a return of +0.3% only. David Einhorn’s Greenlight Capital fared much better—the fund was up 0.9% and has taken a gain of 11.7% YTD.
Take a look at David Einhorn’s heavy profits in some midcaps.
Through the year, some of Loeb’s positions have done exceptionally well while others have detracted. Here is a look at what has been the best from Dan Loeb this year so far.
Dan Loeb gains in Sony Corp
His most publicized long bet in Sony Corporation (NYSE:SNE) (TYO:6758) is up 90% for the year, the bulk of Sony’s gains for this year came before Dan Loeb disclosed his position in the Japanese electronics company in May. Loeb’s holding in Sony is based on shares and swaps, and amounts to 70 million shares or 6.9% of the company, comprising of 46 million shares of ordinary stock and economic exposure to 24 million shares through cash-settled swaps .
Dan Loeb has pushed the company to spin off its entertainment unit to concentrate on its core business, electronics. The company considered the option and later refused to follow this course saying that Sony Enteratinment is an integral part of the company but that the company does need to improve its margins. Most recently Dan Loeb said that he, for the time being, is satisfied with the company’s refusal to spin off its entertainment business. The discussions between Dan Loeb and Sony’s board got interesting when actor George Clooney decided to share his opinion of the hedge fund industry. Loeb has said that he will wait and see and meanwhile keep up constructive dialogue with the company.
Dan Loeb profits in solar industry
Other than Sony, Third Point is doing well in some of its smaller holdings. A small cap, Enphase Energy Inc (NASDAQ:ENPH) has been doing particularly well for the fund. The shares of Enphase are up over 100% in this year. The gains of Enphase come at a time when other solar cell makers have been struggling to override the cheaper solar solutions manufactured in China. Enphase Energy Inc (NASDAQ:ENPH) makes components for the solar photovoltaic industry.
Another position, Cabot Oil & Gas Corporation (NYSE:COG) has gained close to 60% in this year. The fund holds 1.37 million shares of the company, the position was increased in Q2 by buying another 125,000 shares. Constellation Brands, Inc. (NYSE:STZ), the seller of imported beer, has taken in a return of 64% to date, making it another of Loeb’s best performing positions.
Dan Loeb likes art collectors
Third Point’s position in Sothebys (NYSE:BID), the autioneer of art and jewelry, has also been one of his best performing. The fund recently increased position in the company from 2.5 million shares to 3.925 million shares, or 5.7% of the company. Dan Loeb filed a 13D and intends to engage the company in dialogue. For the year Sothebys (NYSE:BID) is up 46%. Loeb has a position in a similar company, Tiffany & Co. (NYSE:TIF), which is also up 38% in this year. The fund holds 1.65 million shares of the jewelry retailer.
Thermo Fisher Scientific Inc. (NYSE:TMO) which is up 43% in 2013 is also one of Loeb’s better performing positions.