Third Point is trailing the S&P 500, however, it is still outperforming most hedge funds. The event driven hedge fund managed by famous investor Dan Loeb was up 3.6 percent in May compared to the S&P 500 return of 2.3 percent according to a shareholder letter obtained by ValueWalk. However, the hedge fund is up 14.7 percent year to date compared to the S&P 500 return of 15.4 percent.
Third Point has been in the news recently after the hedge fund amassed a large stake in Sony and called for a spinoff of the Japanese company’s entertainment unit.
For the first time in recent memory, Third Point has removed nearly all data regarding positions. This could be due to the fact that the fund letters leak to the press and Dan Loeb does not want the information revealed. Loeb hinted to this fact in his Q1 shareholder letter when he added a disclaimer to the beginning of the report. Loeb has removed information regarding AUM, top holdings, biggest winners and losers, as he had done so in the past.
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
Third Point positioning
Third Point has upped its net equity exposure to 47.5 percent by increasing its longs to 70 percent, while short exposure has increased slightly over the past month. Net credit is at 32.3 percent up from 28.4 percent last month. Net macro is at 2.1 percent compared to -4.1 percent last month. Other remained mostly the same. No losses were reported in any of the four categories.
Full shareholder letter below.
2013 5 May Monthly Report TPOU (1) Third Point by ValueWalk.com