Third Point Offshore June Exposure Report

Dan Loeb's hedge fund Third Point Offshore returned -1.8% in June and is up 12.6% year-to-date according to their June performance report.

Exposure Levels

Third Point was 62.2% long and -14.7% short equities during the month, leaving them with 47.5% net long equity exposure.  Compared to May, they reduced gross exposure, but their net exposure remains the same.

In credit, Third Point is 37.8% long, -5.8% short, leaving them 32% net long.  This is largely the same as the month prior.

Geographically, they're net long the Americas by 61%, EMEA at 8% net long, and Asia at 14% net long.  The only changes here compared to May are a 1% increase in America exposure and a 1% decrease in Asia exposure.


No Longer Reporting Top Holdings

The big takeaway here is that Third Point is no longer disclosing its top 10 holdings and top winners/losers each month.  They used to report this information in their Offshore report, but are no longer doing so.

For the most recent info we have seen, head to Third Point's recent portfolio activity here and you can also check out Dan Loeb's latest letter to Sony.

Third Point Increases Asian Exposure (Via Sony): May Exposure Report

Dan Loeb's Third Point Offshore Fund just released its May exposure report.  In it, we see that Third Point was up 3.6% in May and is up 14.7% year-to-date.


Net Long Exposures

In terms of exposure in equities, Third Point was 70% long, -22.5% short, leaving them 47.5% net long equities at the end of May.  This is only a slight increase from April when they were 45.4% net long.

In credit, Third Point was 32.3% net long at the end of May.


Increased Asian Exposure

Geographically speaking, they're 60% net long the Americas region, 8% net long EMEA, and 15% net long Asia.

This marks a sizable difference in their net long positioning in Asia as they are now 15% net long, compared to only 6% net long the month prior. 

This is mostly attributable to their new Sony (SNE) long position.  Loeb is trying to engineer an activist campaign at the company and is pushing for Sony to spin off their entertainment group.  Though it should also be mentioned that Third Point slightly reduced short exposure in the region as well.

Embedded below is Third Point's May exposure report:





Third Point Revealing Less Information

Unfortunately, Third Point has made a change to their monthly exposure report, and they are no longer disclosing their top positions, top winners, or top losers for the month. 

As such, we'll have to rely solely on SEC filings, investor letters, and conference appearances going forward.  If you want to see what US stocks Third Point is investing in, head to our Hedge Fund Wisdom newsletter as we cover it there.

To see the April version of their exposure report that revealed much more portfolio information, head to our post here.   You can also view Third Point's Q1 letter.

Dan Loeb's Third Point Discloses Porsche & Volkswagen Stakes: March Exposure Report

Dan Loeb's Third Point Offshore Fund finished March up 2.9% and is now up 9% for 2013.  Managing $11.7 billion, the fund has current net long equity exposure of 45.1%, down around 2% from February.


Top Positions

1. Yahoo! (YHOO)
2. Virgin Media (VMED)
3. Gold
4. American International Group (AIG)
5. Ally Financial (multiple securities held)

Third Point's top holdings remain unchanged from the month prior.  Their position in Virgin Media was a new addition to the portfolio in 2013.


Newly Disclosed Positions

In their March "top winners" and "top losers" columns, Third Point discloses a few positions we haven't seen before.  In their "top losers" column from last month, they show holdings in Volkswagen AG, Porsche Automobil Holding SE, and Bond Street Holdings.  Porsche is notable because as of 2012 year-end, it was the top holding at Children's Investment Fund (see TCI's Porsche thesis from a conference late last year).

Additionally, Third Point shows positions in Cheniere Energy (LNG) and DE Master Blenders in their top winners category.  The latter was spun-off from Sara Lee, a position Third Point previously owned (and most likely where those shares came from).

Embedded below is Third Point's March exposure report:




For more on this hedge fund, head to Third Point's Q4 letter.

Dan Loeb's Third Point Reveals Positions in Virgin Media & EADS

Dan Loeb's hedge fund firm Third Point is out with its latest exposure report and they were up 1.2% for February and are up 6% year-to-date.

New Positions Revealed

The major news in their portfolio is newly revealed positions in Virgin Media (VMED) and EADS in Europe.  Virgin Media is set to be acquired by Liberty Global (LBTYA) so this is now a merger arbitrage play.

They did not own a stake at the end of 2012 so all buying has been done in 2013.  And they certainly did a lot of buying as VMED is now their second largest position.  We've also detailed how Philippe Laffont's Coatue Management has been a big owner of VMED (and they also own LBTYA as well).

Third Point's position in European Aeronautic Defence and Space Company (EADS) was listed as a 'top winner' for the month and this is the first time this position has appeared on their sheet.  The Dutch based company is listed in the French stock market and Third Point hasn't had to file with regulators there since it's a large cap and they haven't crossed the ownership thresholds. So, it's hard to say when they actually initiated the position. 

Thomson Reuters' data also lists Andreas Halvorsen's Viking Global as holding 1.44% of shares (although it appears as though they've been selling rather than buying recently.)


Third Point's Top Holdings

As of the end of February, here are Loeb's top positions:

1. Yahoo! (YHOO)
2. Virgin Media (VMED)
3. Gold
4. American International Group (AIG)
5. Ally Financial (Multiple securities held)


Exposure Levels

In terms of equity exposure, Third Point is now 47.3% net long.  This is an increase from the month prior as they were 37.8% net long in January.  One sector they are now net short is healthcare (-0.6%).

Their top winners last month included Morgan Stanley (MS) and Herbalife (HLF).  Their investment theses on both stocks were detailed in Third Point's Q4 letter.

Third Point is 27.1% net long credit, -9.4% and net short macro trades (largely government securities it looks like).

Third Point Ramps Up Net Long Equity Exposure in December

Dan Loeb's Third Point Offshore Fund finished 2012 up 21.2%, managing just over $5 billion.  In the hedge fund's most recent December report, we see their exposure levels and latest top holdings:



Exposure Levels

The main takeaway from Third Point's latest exposure report is their sizable increase in net long equity exposure.  They went from being 27.7% net long at the end of November to 43.1% net long at the end of December.

They are slightly net short healthcare and their largest net long exposure comes in the TMT (tech, media & telecom) and industrial sectors.

In credit, Loeb's firm is net long 29.5% and their largest allocation there continues to be asset backed securities.


Third Point's Top Positions

1. Yahoo! (YHOO)
2. American International Group (AIG)
3. Gold
4. Ally Financial (multiple securities held)
5. Murphy Oil (MUR)

Compared to the month prior, there are two notable changes.  First, their position in Greek Government Bonds (GGB's) falls out of their top holdings.  We posted an article about them trimming this position in our weekly linkfest. The second change is that Ally Financial has climbed up the position sheet.

Top winners for Third Point in December included GGB's, AIG, Delphi (DLPH), and Nexen (NXY).  The government exited its stake in AIG, one of the many catalysts Third Point outlined in their thesis on AIG.

NXY has been a big arbitrage play among hedge funds as their merger deal was approved by Canadian authorities.  This stock was flagged as a consensus buy among hedge funds in our November Hedge Fund Wisdom issue.

Dan Loeb's Third Point November Exposure Report

Dan Loeb's Third Point Offshore Fund is out with its latest exposure report for November.  They finished the month up 2.9% and sit up 17% year-to-date and manage $10 billion.


Exposure Levels

Loeb's firm reduced net long equity exposure by a noticeable amount.  They went from 44% net long in October down to 38% net long at the end of November.  Their largest sector exposure continues to be tech, media & telecom (primarily due to their large stake in Yahoo).

In credit, Third Point is 27.7% net long, a 1% increase from the month prior.


Third Point's Top Positions

1. Yahoo! (YHOO)
2. Greek Government Bonds
3. American International Group (AIG)
4. Gold
5. Murphy Oil (MUR)

Their top holdings as a group remain unchanged this month, though their GGB and AIG stakes flipped position ranks.


Top Winners & Losers

Third Point's top winners included Greek Government bonds, Yahoo, Delphi (DLPH), Aveta, and Ally Financial (multiple securities held).  Their top losers included AIG, Short A, Short B, Apple (AAPL), and Liberty Global (LBTYA).

Embedded below is Third Point's November exposure report:




Overall, not too many notable changes in Loeb's portfolio aside from the reduction in net long equity exposure.  Head to Third Point's Q3 letter for more color on their positions.

Dan Loeb's Third Point: October Exposure Report & Top Holdings

Dan Loeb's Third Point Offshore Fund is out with its latest exposure report for October and in it we see that they were up 2.6% for the month and are up 13.8% for the year.


Net Exposure Levels

Their equity exposure continues to rise as they are now net long 44.1%, an increase of 2.4% in net long exposure from the month prior.  This looks to mainly be attributed to a reduction in their short exposure. 

Their largest net long equity exposure continues to come from the technology sector (largely due to their Yahoo position) at 18.8% net long, followed by financials at 8.7% net long (mainly due to their AIG stake).

In credit, they were 26.7% net long at the end of October, down from 30.4% the month prior.


Top Winners & Losers

Their stake in Dolphin Capital Investors was a top winner during the month.  We were the first to reveal that Third Point was set to buy a stake in the Greek property & land company.

Other winners for Third Point include their new stake in Greek Government Bonds as well as Yahoo, AIG, and Murphy Oil.  Murphy recently announced it would spin off its US downstream subsidiary.

Their top losers in the month were Apple, gold, and Overseas Shipholding Group, a new name we've not seen listed in their reports previously.


Third Point's Top Positions

1. Yahoo! (YHOO)
2. American International Group (AIG)
3. Greek Government Bonds (GGB)
4. Gold
5. Murphy Oil (MUR)

You can read Loeb's thesis on AIG, GGB & Murphy in Third Point's Q3 letter.

Dan Loeb's Third Point Discloses Greek Government Bonds & Murphy Oil Stakes

Dan Loeb's Third Point Offshore Fund was up 3.4% in September and is now up 10.9% year-to-date for 2012.  The fund manages $4.7 billion and has seen 17.2% annualized returns.  Takeaways from their latest exposure report are below, including newly disclosed stakes in Greek Government Bonds and Murphy Oil (MUR):


Top Positions As of End of September

1. Yahoo! (YHOO)
2. American International Group (AIG)
3. Gold
4. Apple (AAPL)
4. Murphy Oil (MUR)
4. Greek Government Bonds (GGB)

The last three positions are all noted by Third Point as "positions of approximately equal size."

The main takeaway in this month's exposure report is that Third Point has disclosed a position in Greek Government Bonds.  In the past, we had highlighted how Third Point owned Portuguese bonds.

The hedge fund also revealed a stake in Murphy Oil (MUR). While this is the first time it has been listed on the exposure report, Third Point also filed an amended 13F with the SEC yesterday disclosing that they actually owned MUR in the second quarter.  So this isn't a stake they just went out and bought new in September and that's worth drawing attention to given that MUR has spiked from a low of $44 at the end of Q2 up to almost $56 currently.

AIG is now their 2nd largest holding.  They originally bought AIG in the second quarter, ratcheted up their stake in August, and it appears to have increased (or appreciated over other holdings) in September.  The government has been selling down their stake and institutional buyers have been gobbling shares up.


Net Exposure Levels

In equities, Third Point is now 41.7% net long (73.6% long and -31.9% short), up from 35% net long the month prior.  The hedge fund has slowly and steadily increased net long exposure since the summer sell-off.

In credit, Loeb's firm is net long 30.4%, largely unchanged from months prior.

Geographically, Third Point is net long the Americas at 79% (up from 75%).  The most evident change is they've gone from net short -7% EMEA to net long EMEA 2% over the past two months.  They've also slightly reduced their net short exposure to Asia, going from -10% to -8%.

For more from this hedge fund, check out Third Point's Q2 letter.  Loeb is also featured in the new book from this year: The Alpha Masters, which we recommend reading.

Dan Loeb's Third Point: AIG Now a Top Holding (August Exposure Report)

Dan Loeb's Third Point Offshore Fund was up 1.8% for August and 7.3% year-to-date at that time.  Now managing almost $4.7 billion, Third Point's August exposure report reveals that American International Group (AIG) is now one of their top five holdings.

Third Point's Top Holdings

1. Yahoo! (YHOO)
2. Gold
3. Apple (AAPL)
4. American International Group (AIG)
5. Kraft Foods (KFT)

The government has just announced that they will be selling $18 billion worth of their AIG stake, of which AIG will buyback $5 billion.  This sale will allow the government to become a minority owner.  We've analyzed the AIG situation in the brand new issue of our premium newsletter if you want to read why hedge funds have been buying.

Third Point joins the likes of Blue Ridge Capital, Tiger Management, and Fairholme Capital as owners of AIG.  Loeb originally started a stake in AIG recently in the second quarter.  However, it appears as though they've ratcheted up their position recently.

Their position in Kraft Foods was started in the past few months as well, as they're likely playing the impending spin-off catalyst there.


Third Point's Equity Exposure

At the end of August, the hedge fund was 70.6% long, -35.3% short, leaving them net long equities to the tune of 35.3%.  Their net exposure is largely unchanged from the month of July, though they've slightly increased gross exposure.  Their largest sector exposure continues to be Tech Media & Telecom (largely via their YHOO and AAPL stakes).

In credit, Third Point is net long 30.9%, with their largest exposure coming via asset backed securities.  This is only a slight increase from the month prior.

Geographically, Third Point is net long the Americas 75%, net short EMEA -7% and net short Asia -10%.  Month over month, this means Third Point was increased its short in EMEA and increased its long exposure to the Americas.

For more on this hedge fund, we've also posted up Third Point's Q2 letter.

Dan Loeb's Third Point Buys Kraft, Various Healthcare Plays: July Exposure Report

Just yesterday we posted up Dan Loeb & Third Point's Q2 letter and now we have some more portfolio metrics in the form of their latest monthly exposure report.  In July, Third Point Offshore was up 1.6% and is up 5.5% for the year.

Here are a few new takeaways from their latest exposure report:


- Long Kraft (KFT): The biggest news is that Third Point has disclosed a new position in Kraft Foods (KFT) and it is now their fifth largest position.  The company of course will be splitting into two: a North American grocery business and an emerging snacks business.

Although Pershing Square Capital no longer owns KFT shares, you can see Ackman's presentation on Kraft from a few years ago.  Third Point is most likely playing the spin-off, though.  Nelson Peltz's Trian Fund has also been a large owner of KFT.


- Long Healthcare Plays: Loeb's hedge fund also appears to have started new positions in UnitedHealth Group (UNH), Humana (HUM), Wellpoint (WLP), and Cigna (CI).  All of these names were 'top losers' for the fund during the month.  This is worth highlighting because it is the first time these stakes have been disclosed.  We recently flagged why David Einhorn likes Cigna as he recently bought the name as well.


- Third Point is net long the Americas by 70%, but net short EMEA by -4% and net short Asia by -10%.


- In equities, Loeb's firm is 35.4% net long (67.6% long and -32.2% short).  This marks a decent increase from June, where they were net long 27.3%.  Their largest net long sector exposure comes in technology, media & telecom (largely due to sizable Yahoo and Apple stakes).


- Their credit exposure remains somewhat unchanged from last month at 29.3% net long (37.8% long and -8.5% short).  Their largest exposure there continues to be asset backed securities.


Third Point's Top 5 Positions as of the end of July:

1. Yahoo! (YHOO)
2. Gold
3. Apple (AAPL)
4. Delphi (DLPH)
5. Kraft Foods (KFT)


Third Point's just-released Q2 letter details why Dan Loeb still owns Delphi, among other position updates.  We've also flagged how Loeb recently added to his Yahoo stake.

Third Point Starts Chesapeake Energy & News Corp Stakes: June Exposure Report

Dan Loeb's Third Point Offshore Fund finished June up 0.2% and is up 3.9% for the year.  The big takeaway from their June exposure report is a large new holding in Chesapeake Energy (CHK).


Third Point's Top Positions

1. Yahoo!
2. Gold
3. Delphi
4. Chesapeake Energy
5. Apple

This is the first time Chesapeake has appeared under their top holdings' column.  They did not disclose a position back in the first quarter.  Mason Hawkins' Southeastern Asset Management has a 13.9% activist stake in the company as well.

Noted activist investor Carl Icahn has also taken over a 7% ownership stake in CHK and sees it as an undervalued company.  Icahn argues that they can turnaround the story "if you clean this company up ... and natural gas prices go higher, which I think they will."

We've also posted up Third Point's Q1 letter which details their thesis on Apple and other positions.

Top winners from the quarter include Yahoo, Gold, as well as News Corp, Portugal Obrigacoes do Tesouro and Progress Energy (multiple securities held), the last three of which are newly disclosed positions as well.

News Corp recently announced that it would be splitting into two: an entertainment business (FOX properties) and a newspaper/publishing business (Wall Street Journal, book publishing etc).  This is obviously an event-driven trade for the hedge fund with a catalyst that shareholders and management hope unlocks value.

Third Point's top losers from the second quarter included Delphi, Sara Lee (which completed its spin-off), two healthcare shorts and an ABS short.


Third Point's Latest Exposure Levels

In equities, they are now net long 27.3% (50.2% long, -22.9% short).  This is a slight decrease in net exposure from last month.  Their largest sector exposure comes in technology, media & telecom (largely due to their YHOO stake) at 16.9% net long.  Geographically, they are net long the Americas 65%, net short EMEA -11% and net short Asia -4%.

In credit, Loeb's fund is net long to the tune of 29.8% (long 38.5%, short -8.7%).  This is a decisive increase from the month prior where they were only net long by 14.2%.


Dan Loeb is featured in the new book The Alpha Masters and you can check out our review here.

Third Point's Top Holdings & Latest Exposures

Dan Loeb's Third Point Offshore Fund finished May -2.6% and was up 3.7% year-to-date at that time.  The fund now manages $4.6 billion and has seen annualized returns of 17.1%.  Below are their top positions and latest exposures.


Third Point's Top Holdings

1. Yahoo! (YHOO)
2. Gold
3. Delphi (DLPH)
4. Apple (AAPL)
5. Sara Lee (SLE)

The hedge fund's top winners from the past month included three consumer short positions, one industrial short position, as well as a long of Vertex Pharmaceuticals.  Their top losers in the quarter included gold, YHOO, DLPH, Hess (HES), as well as Abercrombie & Fitch (ANF).

We've previously posted Third Point's Q1 letter which includes their thesis on AAPL among other positions.

Their stake in Sara Lee slides into their top holdings again as this catalyst play will spin-off its coffee business at the end of June and then will  rename its remaining business Hillshire Brands to reflect its line of meat products.

In other recent activity from this hedge fund, we've highlighted that Third Point reduced its Technicolor stake as well.


Latest Exposure Levels

We've noted that throughout the first half of the year, Third Point ratcheted up net long exposure as they liked the risk/reward skew.  However, given the ramp in volatility this past month, it should come as no surprise that Third Point reduced exposure.

At the end of May, they were 31.4% net long equities (44.4% long and -13% short).  This compares to 40% net long the month prior.  During the month, they cut long exposure and increased short exposure.

Geographically, they are net long Americas at 61%, net short EMEA at -10%, and net short Asia at -3%.

They also decreased their exposure to credit.  In April they were 20.7% net long and at the end of May they were only 14.2% net long.  Of note is the fact that they increased their short bet against government securities.


Dan Loeb is featured in the new book The Alpha Masters and you can check out our review here.

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.

Dan Loeb Likes Portuguese Sovereign Debt: Latest Exposure & Positioning

Dan Loeb's Third Point Offshore Fund was up 1.5% for March and is up 6.5% for 2012. In the hedge fund's latest March exposure report, we see that Dan Loeb likes Portuguese Sovereign Debt, a position that had previously not been revealed.

Just last week we highlighted Loeb's comments at a distressed investing panel at Columbia Business School where he briefly mentioned he liked Portugal.

In March, that sovereign bond position was one of his top winners, along with Yahoo (YHOO), Family Dollar (FDO), Aveta, and Apple (AAPL). Loeb also recently engaged in a proxy fight with Yahoo and launched a website to raise investor awareness.


Third Point's Top Positions

1. Yahoo (YHOO)
2. Gold
3. Delphi
4. Eksportfinans ASA
5. Ally Financial

The fund's top holdings continue to be of distressed origination. Some of Third Point's losers from the month include: Barrick Gold (ABX), Genel Energy (LON:GENL), Gold, Volkswagen, and Ivanhoe Mines (IVN).


Latest Exposure Levels

Loeb's firm continues to enter 'risk on' mode as they are 38.5% net long equities (54.2% long, -15.7% short). This is slightly up from February's 36.7% net long exposure and way up from January when they were only net long 28.2%.

Their largest sector exposure continues to be technology via their activist YHOO stake. They are ever-so-slightly net short utilities.

In credit, Third Point is net long distressed by 7.6%, net long performing at 8.7%, net long asset backed securities at 14.5% and net short government at -13%. In total, they are 17.8% net long credit.

To read the investment theses behind some of their positions, head to Third Point's investor letter.

For more from Third Point's founder, head to lessons Dan Loeb has learned as an investor, our most popular post this year.

Dan Loeb's Third Point Starts Apple (AAPL) Stake: Top Positions & Latest Exposures

Dan Loeb's $4.6 billion Offshore Fund at Third Point finished February up 1% and is now up 4.9% for the year. As of the end of February, here are their top stakes:


Third Point's Top Positions

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

Apple now makes an appearance in Loeb's top holdings and is the big takeaway here because the hedge fund did not own AAPL at the end of the year.

Third Point also revealed that one of their big winners in the month was the Medco Health (MHS) and Express Scripts (ESRX) arbitrage play. This is another new play that was not present in Third Point's portfolio at the end of the year. To read about this arbitrage play, check out a free excerpt from our newsletter as it's briefly discussed in the Omega Advisors section.


Latest Equity Exposure

In equities, Third Point is 53.2% long and -16.5% short, leaving them 36.7% net long. They've continued to ramp up their net long exposure as they were 28.2% net long just a month ago.

Their largest allocation continues to be in the technology sector at 16.2% net long (largely due to their activist position in Yahoo). Their next highest exposure is the consumer sector at 7% net long.

One of their losers in the past month was Marvell Technology (MRVL), a new stake they initiated in the fourth quarter. Apple (AAPL) was one of their big winners in the month as it ramped up right after they initiated a stake.


Credit Exposure

In credit, Loeb's firm is 18.7% net long (40% long and -21.3% short). This is up from 15.6% net long exposure in January. Their biggest net long allocation is in asset backed securities (ABS) at 14.3% net long and they continue to be net short government issues at -14.2%.

For some thoughts on their portfolio, head to Third Point's Q3 letter.

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

Dan Loeb's hedge fund firm Third Point LLC returned 3.8% in January to start off 2012. Their offshore fund currently manages $4.59 billion and has seen an annualized return of 17.5%.

Third Point's Top Holdings (as of 1/31/12)

1. Yahoo! (YHOO)
2. Gold
3. Eksportfinans ASA
4. Delphi Corp (DLPH)
5. Ally Financial

There are some notable changes to the upper echelon of this hedge fund's portfolio since we last looked. Eksportfinans ASA has emerged as a meaningful position and Ally Financial (the former GMAC entity) has entered their top 5 stakes. Gold and Yahoo remain top holdings and you can see Third Point's bull case for YHOO here.

One former top holding now notably absent from their top positions list is Sara Lee (SLE). While one could assume they still own it given their 'attractive assets' thesis, it's hard to say if they reduced exposure to the name or if they merely added to other positions.

Also worth highlighting: They've held a stake in Delphi post bankruptcy and the company began trading again in the fourth quarter of 2011 with numerous prominent hedge funds as owners. However, one notable holder (Paulson & Co) has apparently reduced its position size substantially.

In terms of attribution, Third Point saw gains from their stakes in Delphi, gold, UniCredit Spa, Technicolor, and Eksportfinans. They lost money last month from positions in Yahoo, and four undisclosed short positions (2 consumer shorts, 1 communications short, and 1 healthcare short).


Third Point's Net Exposure

After spending much of last year with low net exposure to equities (as low as 15% net long), Third Point has slightly ramped exposure back up. They are now 44.8% long and -16.6% short, leaving them 28.2% net long equities. Their largest exposure comes via technology where they are 12.6% net long (most of which is their activist stake in Yahoo).

In credit, Third Point is 15.6% net long the asset class via 9.6% net long exposure to distressed, 8.7% net long exposure to performing, 14.5% net long exposure to asset backed securities (ABS) and -17.2% net short government securities.

Geographically speaking, Loeb's hedge fund is 58% net long the Americas, -4% net short EMEA, and -3% net short Asia.

For thoughts on their portfolio, head to Third Point's Q3 letter. We'll be sure to post up their Q4 letter when it is released.

Dan Loeb's Third Point Reduces Equity Exposure For Fifth Straight Month

Dan Loeb's Third Point Offshore Fund finished -3.5% for September compared to -7% for the S&P 500. Third Point sits at 0.2% year-to-date. The Offshore Fund manages just over $4 billion and has seen annualized returns of 17.6% since 1996.


Third Point Reduces Equity Exposure For Fifth Straight Month

In what has been an ongoing theme, Third Point reduced equity exposure yet again in September. Earlier in the year, we highlighted Loeb's cautious stance as he began to reduce exposure. At the end of September, Third Point was only 15.6% net long equities, compared to 17.7% net long a month prior.

Obviously such positioning has led to Third Point's outperformance. Geographically, Third Point has been net long the Americas and net short the EMEA and Asia regions. Risk management has been the name of the game for the fund this year.

In September, Loeb's largest net long exposure came in the technology sector at 8.9% and energy at 3.4%. Third Point is net short industrials at -1.3% and utilities at -0.5%.

In credit, Third Point is 15.6% net long, down from 18.5% net long in August. They continue to have the largest exposure to asset backed securities and remain short government issues.


Third Point's Top Positions

1. Yahoo! (YHOO)
2. Gold
3. Delphi
4. El Paso (EP)
5. Technicolor (multiple securities owned)

We detailed Loeb's activist investment in Yahoo when he first took the position. He also presented his bull case for YHOO at the Delivering Alpha conference.

Third Point's biggest winners last month were commodity short A, energy short basket, SanDisk (SNDK), auto suppliers short basket, and short B. Obviously they don't name their short positions but it's no surprise that many shorts were their top percentage gainers. The hedge fund's biggest losing positions last month were gold, Mosaic (MOS), Delphi, CVR Energy (CVI), and Yahoo! (YHOO).

Assuming Third Point still owns Mosaic, you have an opportunity to purchase shares at prices lower than the hedge fund. They originally bought MOS at $65 on the Cargill family secondary and then subsequently bought the dip in June (presumably around $60). MOS shares now trade around $49.

Hedge Fund Third Point Reduces Equity Exposure For Third Consecutive Month

For the month of July, Dan Loeb's hedge fund firm Third Point offshore fund was up 0.3%. Year to date, they are up 6.9% versus 3.9% for the S&P 500. Seeing 18.4% annualized returns, it's no wonder that Third Point is closed to new investors.

Net Exposures Down Yet Again

Loeb's hedge fund is only 23.3% net long equities (39.7% long and -16.4% short). In June, we detailed how Third Point reduced equity exposure again. July marks the third consecutive month in which Loeb's firm has reduced risk.

In July they ratcheted down exposure from 30.7% net long down to only 23.3% net long. Caution is the name of the game for Loeb's firm and he outlines the rationale in his quarterly letter.

Their largest net long equity exposure comes in the energy sector at 6.1%, as well as consumer and basic materials each at 5.7%. They are net short technology and utilities.

In credit, Third Point is 20.9% net long (32.2% long and -11.3% short). They continue to be net short government issues and their largest net long exposure comes in asset backed securities (ABS).


Third Point's Top Positions

1. Gold
2. Delphi Corp
3. El Paso (EP)
4. CIT Group (CIT ~ multiple securities held)
5. Mosaic (MOS)

Loeb's stake in MOS is brand new and the thesis on Mosaic is detailed in Third Point's Q2 letter. They also continue to hold Delphi, a position numerous hedgies like.

In the past month, Third Point's top winners include gold, Peregrine Metals (PGM), CVR Energy (CVI), Delphi, and an interest rate hedge. Their top losers included NXP Semiconductor (NXPI), CIT Group (CIT), Pall Corp (PLL), Health Net (HNET), and Brenntag AG (BNR).

Shares of NXPI have traded down almost 43% in the past 3 months. Many see this company as a play on the future 'mobile wallet' due to its near field communications (NFC) chip that allows transactions between phones. Third Point has been able to offset the negative performance of this company with gains in other areas.

Third Point Reduces Equity Exposure Further in June

For the month of June, Dan Loeb's Third Point Offshore Fund returned -2.6% but is still up 6.8% for the year and has seen 18.5% annualized returns. The Offshore fund manages just under $4 billion and Third Point recently closed to new investors.

Equity Exposure

At the end of June, Third Point's total equity exposure was 56.3% long and -25.6% short, resulting in 30.7% net long exposure. Their largest net long exposure comes in the consumer sector at 7.1% net long and the energy sector at 6.5% net long. The only sector they were net short was technology.

This marks a reduction in Third Point's equity exposure for the second consecutive month. At the end of May, they were 42.6% net long equities and so they've decreased exposure by almost 12% month over month.

Credit Exposure

Dan Loeb's firm also reduced credit exposure during the quarter down to 21.7% net long (down from 34.4% net long at the end of May). Their largest exposure this time around was 18.1% net long asset backed securities and 10.2% net long distressed debt. On the other side of things, they continue to be -10.1% net short government securities.

Top Positions

1. Delphi
2. El Paso (EP)
3. Gold
4. CIT Group (multiple securities held)
5. Technicolor (multiple securities held)

While at the end of May gold was Third Point's largest position, the slide in the precious metal caused it to slip to their third largest position a month later. CIT Group moves into their top 5 holdings this month, replacing CVR Energy (CVI).

Delphi is Loeb's largest holding and David Einhorn's Greenlight Capital also recently took a stake. In fact, Third Point and Greenlight share a few other common positions such as gold and CIT Group.

Top Winners & Losers

In the month of June, Third Point's positions in CVR Energy, Volkswagen, and various asset backed securities were their top winners. Their top losers in the month included Delphi, LyondellBasell (LYB), El Paso (EP), gold, and Technicolor.

Hedge Fund Third Point Reduces Net Long Exposure: Latest Positioning

Dan Loeb's hedge fund firm Third Point LLC has released its March performance and exposure report. Third Point returned 0.9% in March and is up 8.6% year to date versus 5.9% for the S&P 500. Third Point's Offshore Fund now has an annualized return of 19%.

Latest Exposure Levels

Third Point is net long equities to the tune of 42.2%. This is a decrease of 14%, down from last month's 56.2% net long exposure. As various crises (risk) around the world escalated, Third Point has ratcheted their exposure down. In Loeb's year-end letter, he voiced that he was concerned about the consensus bullish view.

Third Point's largest net exposure is in energy, basic materials, and consumer. In credit, Third Point is 17.1% net long asset backed securities (RMBS & CMBS exposure), 11.5% net long distressed, 6.1% net long performing and -5.1% short government securities. Their credit allocations are largely unchanged from last month.

Third Point's Top Positions:

1. Gold
2. Delphi Corp
3. Chrysler
4. El Paso Corp (EP)
5. NXP Semiconductor (NXPI) ~ multiple securities held

In February, we highlighted how Loeb started El Paso as a new position and it remains one of their top holdings. This month, their exposure to NXP Semiconductor (NXPI) replaces LyondellBasell (LYB) as their fifth largest position.

NXPI is a prime player in the NFC (near field communications) space that seems to be sweeping the mobile industry as interest in mobile payments heats up. The company recently priced a secondary offering at $30 per share and has been doing a roadshow to drum up investor interest. This offering significantly helps liquidity in the stock and should allow larger hedge funds to accumulate positions.

Top Winners & Losers for Third Point

We get a glimpse at some of Third Point's other positions with their top winners from the month, including: CVR Energy (CVI), Short A, Statoil Fuel & Retail ASA (SFR), Aveta, and Health Net (HNET). Their top losing positions for the month include Potash (POT), PHH Corp (multiple securities held), Inmarsat, ProSieben (multiple securities held), and El Paso.

To see analysis of Loeb's portfolio and the investment thesis behind some of his picks, check out our Hedge Fund Wisdom newsletter.