Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dan Loeb, Third Point 2013 Q4 Investor Letter

Dan Loeb and Third Point are some of the most active investors and that’s one of the reasons why their moves should be watched closely. However, while the information we get from the SEC filings reveals only a small percentage of what Third Point actually does, the quarterly letters to investors give us a larger perspective.

THIRD POINT

Yesterday, we discussed already a sequence from Loeb’s latest investor letter, which refers to the fourth quarter of last year. In that particular sequence the investor discussed its position in The Dow Chemical Company (NYSE:DOW), which represents its largest current investment of Third Point.

Aside from The Dow Chemical Company, another holding that is mentioned by Loeb in the letter is Ally Financial Inc (NYSE:GMA.CL), in which Third Point became one the largest investors after acquiring around 9.5% of the company in the second half of 2013.

“Divesting $30 billion of assets on four continents and resolving a highly complex  bankruptcy of a subsidiary are only the beginning of the story from this team, and we expect them to execute on their multi-year plan to significantly increase Ally’s earnings,” Loeb says in the letter.

In addition, Third Point also discusses its holdings in Sony Corporation (ADR) (NYSE:SNE), Softbank Corp (USA) (OTCMKTS:SFTBF) and T-Mobile US Inc (NYSE:TMUS), which represents the fund’s core investments and are expected to deliver a significant value during 2014.

Overall, Third Point managed to deliver steady returns across its portfolio. The fund gained 26% during 2013, out of which the largest increase has been contributed by equities: 18%, followed by corporate and structured credit which added 3% each.

“We generated meaningful alpha in Technology, Media and Telecom investments, European equities, performing credit, and U.S. residential mortgage-backed securities. While overall performance was solid, there were certain areas where we could have done better. The Japan portfolio disappointed later in the year as Sony underperformed the broader market, and we missed a number of event-driven opportunities in the Health Care sector,” the letter added.

The full text of Third Point Investor Letter for the fourth quarter of 2013, can be accessed through the link below:

Third Point Q42013 Letter

Disclosure: none

Recommended Reading:

Third Point 2013 Q3 Investor Letter

Jeff Smith Trims Holdings in Integrated Device Technology Inc (IDTI) and Carbon Corporation (CCC)

Hedge Fund Highlights: Warren Buffett, Carl Icahn & Paul Tudor Jones

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...