Dan Loeb's Third Point: Top Positions & Latest Exposures ~ market folly

Wednesday, May 2, 2012

Dan Loeb's Third Point: Top Positions & Latest Exposures

For the month of April, Third Point's Offshore Fund was -0.1% and is up 6.4% year to date.  Dan Loeb's hedge fund has seen an annualized return of 17.4% and their latest exposure report breaks down where they're allocating their capital.

Equity Exposure

On the equity side of things, Third Point is 51.5% long and -11.5% short, leaving them 40% net long.  This is a 1.5% increase in net long exposure since the month prior, but is mainly attributed to the fact that they reduced their short book (they actually reduced their longs compared to last month).

Their largest allocation comes with an 18.9% net long position in the technology sector (largely due to their activist position in Yahoo and big Apple position).  They are ever-so-slightly net short utilities.

Credit Exposure

In credit, they continue to be short government issues to the tune of -11.7%.  Their largest net long exposure is in asset backed securities at 14.6%.  In total, their credit exposure is 40.9% long, -20.2% short, leaving them 20.7% net long.  This is a 2.2% increase in overall net long exposure since the month prior.

Top Positions

1. Yahoo (YHOO)
2. Gold
3. Delphi (DLPH)
4. Apple (AAPL)
5. Eksportfinans ASA

Comparing their April top holdings to the month prior, their top three stakes are unchanged.  Apple has jumped back up into their top holdings as they either added to their position or their stakes in other top holdings decreased in value.

In the month, their top winners included Yahoo, Portuguese Sovereign Bonds, Volkswagen, Lehman Brothers, and Ally Financial. Much of their positive performance offset in the quarter came from the credit side of things.  We previously posted Loeb's comments at a distressed investing panel.

Their top losers included Ivanhoe Mines (IVN), Consumer Short A, Redecard SA, Technicolor (multiple securities owned), and Metro AG.  This is notable because this is the first time we've seen their positions in Redecard SA and Metro AG disclosed.

For more on this hedge fund, head to lessons Dan Loeb's learned as an investor.

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