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Third Point Investor Letter June 2012

Hedge Fund News: Dan Loeb, Phil Falcone, CitigroupBloomberg converted Third Point’s investor letter and posted it on its website. Dan Loeb disclosed a large position in Chesapeake Energy (CHK) which is probably in the $200 million – $350 million range. The fund’s top winning positions are Yahoo, Progress Energy and News Corp. Here is Third Point Offshore Fund’s June 2012 letter:

Monthly Performance

                                   June   YTD   AUM(m)
Third Point Offshore  Fund, Ltd.  0.2%  3.9%   $4,532
S&P 500                           4.1%  9.5%

Performance Statistics^1

                            Third Point Offshore Fund Ltd. S&P 500
Annualized Return                      17.0%                5.7%
Cumulative Performance                 1,055%               138%
Annual Standard Deviation              13.4%                16.5%
Annual Downside Deviation               7.8%                11.4%
Correlation to S&P 500                  0.42                1.00
Sharpe Ratio                            1.24                0.42

Exposure and Performance

Long/Short Equity    Exposure             P&L
                     Long   Short   Net   Long   Short   Net
          Consumer   3.4%   -2.5%  0.9%  -0.1%    0.0% -0.1%
Energy & Utilities   4.0%   -1.8%  2.2%   0.3%   -0.1%  0.2%
        Financials   2.9%   -0.5%  2.4%   0.1%    0.0%  0.1%
        Healthcare   5.5%   -2.5%  3.0%  -0.1%   -0.3% -0.4%
    Ind. & Comdty.  10.1%   -6.8%  3.3%  -0.6%   -0.2% -0.8%
               TMT  20.0%   -3.1% 16.9%   0.6%    0.0%  0.6%
     Market Hedges   4.3%   -5.7% -1.4%   0.8%   -0.8%  0.0%
  Total L/S Equity  50.2%  -22.9% 27.3%   1.0%   -1.4% -0.4%

   Credit      Long   Short   Net   Long   Short   Net
  Distressed   5.9%    0.0%  5.9%   0.2%    0.0%  0.2%
  Performing  14.6%   -6.0%  8.6%   0.3%    0.0%  0.3%
       ABS^4  18.0%   -2.7% 15.3%   0.0%   -0.1% -0.1%
Total Credit  38.5%   -8.7% 29.8%   0.5%   -0.1%  0.4%

   Macro      Long   Short   Net    Long   Short   Net
       Gold   6.4%   -0.4%   6.0%   0.1%    0.0%  0.1%
 Government   1.3%  -17.9% -16.6%   0.1%   -0.1%  0.0%
  Tail Risk   0.5%   -0.9%  -0.4%   0.0%   -0.1% -0.1%
Total Macro   8.2%  -19.2% -11.0%   0.2%   -0.2%  0.0%

    Other        Long   Short   Net   Long   Short   Net
Risk Arbitrage   1.6%    0.0%  1.6%   0.1%    0.0%  0.1%
      Privates   2.3%    0.0%  2.3%   0.1%    0.0%  0.1%
    Currency^3   0.0%    0.0%  0.0%   0.5%   -0.5%  0.0%
   Total Other   3.9%    0.0%  3.9%   0.7%   -0.5%  0.2%

Geographic Exposure - Long/Short Equity Only

Long Exposure

Americas:  90%

EMEA:  11%

Asia: 0%

Short Exposure

Americas:  -25%

EMEA:  -22%

Asia: -4%

Net Exposure

Americas:  65%

EMEA:  -11%

Asia: -4%

Top Winners:  

Yahoo! Inc.                                                                                                                                           

Progress Energy (Mult. Sec.)

News Corp                                                                                                                                            

Portugal Obrigacoes do Tesouro        

Gold                                                                                                                                                                      

Top Losers:

Delphi Corp                                                                                                                                          
Sara Lee Corp
Healthcare Short A                                                                                                               

Healthcare Short B                                                                                                                                

ABS Short A
Top Positions:
Yahoo! Inc.                                                                                                                                                                           

Gold                                                                                                                                                                      

Delphi Corp

Chesapeake Energy Corp                                                                                                                                                     

Apple Inc.                             

Position Concentration 

                Top 10    Top 20

Long        38%         49%

Short        23%         29%
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