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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of