Third Point Hedge Fund is managed by Dan Loeb. It has $8.9B in assets under management and Loeb is a noted stock picker and value investor.
Market Folly has posted a copy of Third Point’s 2011 Letter and it is full of insights regarding how a top hedge fund manager thinks about his investments and the thesis behind a few of his more interesting investments:
Loeb’s firm has focused on two areas recently: forced selling and hidden growth. Positions they’ve acquired when others have been forced sellers are Unicredit, Skyworks Solutions (SWKS), and EksportFinans.
Under the hidden growth thesis, they’ve invested in a long credit position in Ally Financial, as well as long equity stakes in Volkswagen and Abercrombie & Fitch (ANF). They acquired their position in Abercombie in January after shares had been cut almost in half
Investing is all about finding value and value is usually not found in areas where everyone is looking. That is why Loeb’s strategies make sense.
Loeb is also known for his activist letters. His letters can be quite pointed when he feels that a company’s management isn’t up to snuff and they make very interesting reads.