Herbalife Paces Third Point's First Quarter

Apr 11 2013 | 12:57pm ET

Third Point said that its investment in Herbalife was among the drivers of its strong first quarter.

The $11.7 billion New York-based hedge fund's flagship rose 9% in the first three months of the year, thanks in part to its bet on the nutritional supplements company, which earned Third Point at least $50 million. Unlike Pershing Square Capital Management's William Ackman and Carl Icahn, however, Third Point has exited its Herbalife position, leaving the two longtime adversaries to duke it out over the company, which Ackman calls a pyramid scheme.

Third Point also gained on Yahoo! Inc. and on a short against Japan—both the yen and Japanese equities.

"We previously highlighted that we expect 2013 to be a favorable year for Third Point's bread-and-butter event-driven investing style," Third Point said this week.

The hedge fund, which returned 21% last year, didn't win on everything: Its bets on Greek bonds, which have fueled much of its recent returns, were among its worst on the quarter, as was an investment in gold.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note