Third Point LLC, a hedge fund headed by activist investor Dan Loeb reopened its flagship fund to accept new investments for a short period only, according to report from the Wall Street Journal based on information from people familiar with the situation.
During a quarterly conference with investors on Tuesday, Loeb said Third Point plans to accept more investments for its flagship fund until October 1.
Loeb did not provide details as to how much investment his flagship fund would accept and what opportunities he is planning to pursue.
Relying On Old-Fashioned Stock Picking, Lee Ainslie Reports His “Strongest Quarter” Ever
Lee Ainslie's Maverick Fund USA enjoyed its "strongest quarter in the fund's history" during the three months to the end of June. According to a copy of the firm's second-quarter letter to investors, which ValueWalk has been able to review, Maverick Fund USA gained 18% in the second quarter. Following this performance, the fund was Read More
Last year, Third Point returned approximately $1.4 billion of 10% of its assets under management to investors to “moderate” its growth. The hedge fund also explained that the decision was made to ensure it can continue to deliver outstanding returns. At the time, other prominent hedge funds did similar moves
Third Point gained 6% in the first-half of 2014
Third Point currently has $15 billion worth of assets under management. Its flagship fund gained 6% compared with the 4.4% average return of event-driven funds during the first-half of 2014, according to HFR Inc., a research firm that provide comprehensive data about hedge funds.
In June, Third Point Reinsurance Ltd (NYSE:TPRE) climbed 1.7%, and its year-to-date return was 5.5%. The fund announced that it would release its second-quarter results after the market close on August 7.
Corporate and credit structured investments
In his second-quarter 2014 letter to investors, Loeb indicated that his firm’s profit was driven by its corporate and credit structured investments. According to him, those investments generated two to three times the returns of their indices and peers.
Loeb said the performance of Third Point’s U.S. equity portfolio was slightly higher than the S&P 500. He also stated that its relatively small investments in Latin America have been exceptional performers. He said his firm’s exposure in Japan has been the biggest source of its losses in 2014.
Loeb said the firm recently sold some positions and focused on several larger ideas. He said, “We are agnostic about geography and sector. Credit exposures should remain steady, and we will continue to be highly selective when initiating new opportunities. We believe that having dry powder on hand will be increasingly useful towards year-end.” He expected the market volatility to continue.