Third Point Investors posted a strong 7.1 percent gain in November, boosting its rise for the year to 26.9 percent, according to its latest monthly tear sheet. This compares with 5.9 percent and 28.1 percent, respectively, for the S&P 500, including dividends. As a result, the multistrategy hedge fund led by Dan Loeb is well positioned to achieve its best results since 2021, when it was up 23.9 percent.
Third Point’s November increases were driven mostly by the fundamental and event-driven equity book, especially on the long side, which kicked in 9.5 percent to gross gains but was offset somewhat by the short book. For the year to date, the fundamental and event-driven book accounted for nearly 27 percentage points of net gains. Credit and side-pocket credit investments each kicked in an additional 2.8 percent to this year’s net performance.
Third Point’s five biggest winners last month were Siemens Energy, Amazon, Pacific Gas and Electric, Live Nation Entertainment, and Apollo Global Management. The five biggest losers were four different unidentified short positions and Taiwan Semiconductor Manufacturing.
Amazon and PG&E are also among the big winners year-to-date. The biggest is an unidentified private company, with energy company Vistra and Meta Platforms rounding out the top five. Bath & Body Works and Advance Auto Parts are the two biggest losers for the year.
Heading into the final month, Third Point grew even more bullish, boosting its net long exposure to close to 84 percent from nearly 75 percent in October. Its four largest long positions are in the same order as in the previous month: PG&E, Amazon, TSMC, and life sciences company Danaher.
This month, Meta replaced UBS among the top-five equity long positions even though Third Point had halved its Meta stake in the third quarter. Vistra still was the fourth-largest U.S.-listed long at the end of September after Third Point cut its position by about 29 percent, according to its most recent 13F filing. It is not known whether the hedge fund continued to reduce the stake over the past two months.
Microsoft remains the fifth-largest long at the end of the third quarter; the firm unloaded 45 percent of the shares, according to the quarterly filing.
In the third quarter, Third Point more than doubled its stake in Intercontinental Exchange — which owns futures, equity, and options exchanges, including the New York Stock Exchange — making it the sixth-largest U.S.-listed long. The firm also liquidated its stake in Alphabet after reducing its holdings by about one-third in the previous quarter.
