Hedge Fund Third Point Updates Two Positions ~ market folly

Tuesday, March 9, 2010

Hedge Fund Third Point Updates Two Positions

In a 13G filed with the SEC, Dan Loeb's hedge fund has disclosed their position in Accuride (AURDQ). The filing was made due to activity on February 26th, 2010 and they now show a 17.6% ownership stake in the company with 24,754,484 shares. This is a newly disclosed position for them as they previously did not show it when we looked at Third Point's portfolio.

Upon digging into the fine print of their 13G filing, we see that Loeb's hedge fund owns 14,254,484 shares (upon the conversion of their 7.5% Senior Convertible Notes due 2020), and 10,500,000 shares of common stock that they purchased in the open market. Accuride of course just recently emerged from bankruptcy and this investment is right up Third Point's alley as they have been investing in many automotive related companies. To learn how to invest like this hedge fund manager, check out Dan Loeb's recommended reading list.

Additionally, Third Point also filed an amended 13D on shares of The Phoenix Companies (PNX). That filing was made because of activity on February 24th, 2010 and Third Point is showing a 4.3% ownership stake in PNX with 5,000,000 shares. This is a decrease of 1,974,000 shares since December 31st, 2009 as they previously owned 6,974,000 shares back then. They sold the shares between February 16th and February 26th at prices ranging from $2.297 to $2.325. There is some fine print regarding these sales and those interested can view the screenshots of the SEC filing below:

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(click to enlarge)

For more on this hedge fund, you can view Dan Loeb's most recent investor letter here. Additionally, we've previously examined Third Point's portfolio, as well as their recent performance and exposure levels.

Taken from Google Finance, Accuride is "a manufacturer and supplier of commercial vehicle components in North America. The Company’s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies and other commercial vehicle components. The Company’s business consists of seven operating segments that design, manufacture and distribute components for trucks, trailers and other vehicles."

The Phoenix Companies "is a provider of life insurance and annuity products. The Company provides these products and services through a variety of third-party financial professionals and intermediaries, supported by wholesalers and financial planning specialists, such as national and regional broker-dealers, financial planning firms, advisor groups, banks, insurance companies and brokerage general agencies."

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