We have just obtained Dan Loeb’s Third Pointhedge fund stat sheet for August, which discloses a new position in American International Group, Inc. (NYSE:AIG) (more on the position below). Last month, we posted Dan Loeb’s Third Point LLC shareholder letter for the second quarter. Loeb discusses politics, the European crisis, and various holdings of the value oriented hedge fund. Loeb purchased a stake in Kraft Foods Inc. (NASDAQ:KFT) in July.
According to Third Point’s latest letter, the year to date return for the fund is 7.3%. For July the fund returned 2.3%. The flagship hedge fund currently has $4.7 billion in Assets under management (AUM). The total assets of the firm are currently, $9.2 billion. Both total AUM and AUM for the main hedge fund has increased over the past several months.
Net equity exposure increased from 27% in June, to 35% in July. Loeb’s fund has net credit exposure of 29.3% and ‘other’ at 5.5%. What is very interesting is the new category Loeb adds to the stat sheet titled ‘macro.’ This is the third time we have seen a macro category for Loeb (readers can see the contrast with May’s sheet).
With value investors increasingly stating that the macro environment has caused very high correlations, some have begun to look more at the macro picture. Macro consists of Gold (net long 5.5%), Government (unclear what the meaning is), and tail risk (black swan) strategies. Loeb is 5.5% net long Gold, and 19% net short Government. We are not sure if this means treasuries, Sovereign debt, or credit default swaps. However, Loeb’s top losing position is titled ‘Government Short’, we believe that he is short Treasuries. This would also make sense, since treasuries had a solid month overall in July.
The hedge fund is 70% net long in US equities, 10% net short in Asia, and 4% net short in Europe, the Middle East and North Africa.
Top holdings of the fund across asset classes and geography, in descending order:
Yahoo! Inc. (NASDAQ:YHOO). We have written dozens of articles on Dan Loeb’s proxy war with Yahoo! Inc. (NASDAQ:YHOO)., which readers can find here. Loeb is now on the board after winning a successfully proxy battle with management. Yahoo! Inc. (NASDAQ:YHOO) was also the biggest loser of the month, as shares declined over 7% in August.
Gold (NYSE:GLD) as mentioned above. This holding has not changed. It was the second biggest winner of the month. Only Apple Inc. (NASDAQ:AAPL), which is the third largest holding, did better.
Apple Inc. (NASDAQ:AAPL). Loeb explains in detail why he is bullish on Apple in his first quarter letter. Apple Inc. (NASDAQ:AAPL) is up over 8% in August.
The newest position is American International Group, Inc. (NYSE:AIG). This is the first time that American International Group, Inc. (NYSE:AIG) has shown up in Third Point’s holdings. American International Group, Inc. (NYSE:AIG) was also the third biggest winner of the hedge fund in August. The filling does not state whether this is a a long or short position. However, using some basic math we have been able to conclude that this is very LIKELY a long equity position. The second largest winner was Apple Inc. (NASDAQ:AAPL), which was up approximately 12% in August. We know that Loeb has owned Apple Inc. (NASDAQ:AAPL) equity for quite some time. The fourth largest winner is Delphi Automotive PLC (NYSE:DLPH). DLPH equity was up approximately 8% in August. American International Group, Inc. (NYSE:AIG) is the third largest winner for the month of August. The equity was up 8.23%. It seems highly likely that this is therefore a long equity stake in AIG.
Added in July, Kraft Foods Inc. (NASDAQ:KFT)’s is the fifth largest position. The new position in KFT was not disclosed in the second quarter level. Kraft Foods Inc. (NASDAQ:KFT) is now the fifth largest holding. The letter does not mention whether the holding is a short or long.
Chesapeake Energy Corporation (NYSE:CHK) has dropped off the list. Loeb did not mention Chesapeake Energy Corporation (NYSE:CHK) in the second quarter letter either. However, according to Third Point’s 13F,, Daniel Loeb owns 2.25% Contingent Convertible Senior Notes Due 2038.
Delphi Automotive PLC (NYSE:DLPH) is another large holding. Loeb owns both the equity and the debt. He detailed his rationale in his second quarterly letter.
Loeb held 13,339,711 shares of Delphi Automotive PLC (NYSE:DLPH) valued at $26.41 equaling approximately 352 million worth of equity. John Paulson is another large holder of both Delphi Automotive debt and stock. Delphi Delphi Automotive PLC (NYSE:DLPH) fell off the top holdings list.
(Disclosure: No positions in any securities mentioned)