Dan Loeb and Third Point’s 2012 Returns

THIRD POINTDan Loeb’s Offshore Fund returned 3.9% after fees during the first half of 2012. Our calculations showed that Dan Loeb’s long stock picks actually under performed the market significantly so far this year. During the first half Third Point’s large-cap stock picks gained 6.8%, far less than the S&P 500 index. During the second quarter Third Point’s large-cap stock picks lost 7.7%, far more than the S&P 500 index (see the details). Overall, Dan Loeb’s large-cap stock picks lost 1.4% during the first half of 2012. So how did he actually return 3.9%?

Third Point combines several strategies under its roof. In May, Third Point Offshore Fund’s equity positions amounted to 44% of its assets. The fund had a 13% short position. His short positions probably lost more than his long positions during the first half. Third Point also has a large credit exposure and employ other strategies. See the table below showing long, short, and net exposures:

Dan Loeb Third Point 2012 Returns

Overall, Dan Loeb was a bad stock picker during the first half but his other strategies performed much better than his stock picks.

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!