Third Point's Loeb Lauds 'Extraordinary' Year

Feb 10 2011 | 4:55am ET

When you're on a roll like Third Point's Dan Loeb, a little crowing is certainly in order. And Loeb, whose funds rose more than 30% last year and more than 3.5% last month, did some in his fourth-quarter letter to investors.

"Last year was an extraordinary one for Third Point and its investors, with strong returns generated from profitable investments across all strategies," Loeb wrote. "The year was further distinguished by a dearth of losers in the portfolio, with no single position costing us more than ~20 basis points."

Third Point's funds rose between 32.8% and 41.7% last year.

Loeb said he remained optimistic for this year—an optimism that paid of in January, when "two of our holdings each announced agreements to be acquired at premiums." But he warned about "the growing consensus around the bullish view we have held since April 2009."

The Third Point chief also said that the self-congratulatory letter would be his last: "In order to keep our views proprietary and maximize time spent on investing, I am relinquishing authorship of our Quarterly Letter, which will now focus on analysis of portfolio positions, and business developments."

Those wanting to know more about what Loeb is thinking will simply have to invest with Third Point; Loeb said he will "share my market observations and outlook" during the hedge fund's quarterly conference calls.

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