Dan Loeb usually loves popping bubbles. Made an absolute killing on them last year. (By contemporary hedge fund standards, anyway, which means he more or less matched the performance of the S&P 500.) However, it seems he was too blinded by the south Florida sunshine last month to take part in that bubble bursting, at least to the good, anyway.
The firm’s largest Third Point Offshore fund lost 7.6%, while the leveraged Third Point Ultra fund slumped 10%, according to an investor letter seen by Bloomberg. The declines erased a portion of the 23% gain in the Offshore fund and a 27% surge in the Ultra fund last year, another document shows…. It’s not clear exactly what caused the losses in the Offshore fund in January. Some of its top disclosed holdings at the end of last year, such as SentinelOne Inc, Danaher Corp. and Amazon.com Inc, slumped more than 10% last month.
Now, that’s not Melvin Capital bad, but still: You don’t really want to mentioned in the same breath as Gabe Plotkin at the moment, do you? So Danny Boy is seeking to change his luck by doing his thing across the pond. And he’s not alone.
Florida-based hedge fund Elliott Management Corp. is making waves at U.K. pharmaceutical giant GlaxoSmithKline PLC and SSE PLC, an electricity network and alternative energy provider. Daniel Loeb’s Third Point LLC is calling for a breakup of Shell PLC. And Trian Fund Management LP, another well-known U.S. activist hedge fund, headed by Nelson Peltz, owns a stake in Unilever PLC…. The flurry of activity shows how the U.K. market is particularly ripe for activist campaigns. With a total market value of around $2.7 trillion, the London Stock Exchange’s blue-chip FTSE 100 benchmark is among Europe’s biggest indexes, offering investors a pool of big-cap candidates. At the same time, the market has become cheap due to individual company missteps, a relative lack of high-growth technology companies that thrived during the pandemic and the economic fallout from Britain’s divorce from the European Union.
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