19th Apr 2016 08:49
LONDON (Alliance News) - Daniel Loeb's Third Point LLC began 2016 with "significantly less exposure at risk" than in recent years due to an expectation of continued market volatility, according to annual results Tuesday of Third Point Offshore Investors Ltd, a London-listed hedge fund managed by the activist.
Third Point "believes both long and short investment opportunities have been created by the current volatility and continues to search for compelling situations across the capital structure," the investment manager said in a review. "The manager maintains a diversified portfolio, with exposure to long/short equity, credit, structured credit and macro investments."
Third Point Offshore Investors' net asset value per share decreased by 2.6% and 2.9% in the dollar and sterling share classes in 2015, as Third Point posted "slightly negative" performance for the year. The company's net assets fell by 2.9% to USD835.9 million in 2015. It was unable to pay a dividend in 2015, due to the fall in NAV.
"Market volatility began in earnest in August and continued throughout the second half of the year. The turbulent investment environment was attributable to a number of macroeconomic concerns including devaluation in China, the European migrant crisis, weakening global data, movement in energy and fears of a US recession," Third Point said.
Structured credit was Third Point's strongest performing strategy, contributing "significant gains" throughout the year, while sovereign credit added "meaningfully" to returns with performance driven by a "large position" in Argentinian government debt.
Corporate credit detracted from portfolio performance, Third Point said, led by performing credit positions in the energy sector. Within equities, positive results from healthcare and industrials and commodities were offset by losses in TMT and energy.
Large positions in healthcare were among the top performers despite a very volatile year for the sector.
Third Point Offshore Investors dollar shares were up 1.7% at USD14.49 Tuesday morning, while the pound shares were down 1.3% at 1,325.00p.
By Samuel Agini; [email protected]; @samuelagini
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