Third Point Drops 8% In August

Sep 7 2007 | 1:17pm ET

After a rough August, hedge fund agitator Daniel Loeb might be inclined to write a venomous letter to himself.

His $3.7 billion Third Point Offshore Fund was down 8.3% in August, cutting its year-to-date returns to 6.8%.

According to the firm’s monthly investor letter, the fund’s “winners” last month include Lyondell Chemical, Alkermes Inc. and Ligand Pharmaceuticals, while “losers” included PDL BioPharma, Granite Construction and Leap Wireless. PDL BioPharma is the recipient of one of Loeb’s most recent trademark invective-filled missives.

The activist manager penned a letter to the company’s chairman, Patrick Gage, on Aug. 28 following PDL’s conference call demanding his resignation because Gage “gave the impression that repositioning the Company could be an alternative to selling the Company.” Loeb, who previously wanted the company to sell itself as a whole or in pieces, also cited the “lame duck” Gage’s emphasis on research and development strategies and “spotty” record at other public companies as catalysts for its demand for management change. New York-based Third Point currently owns a 9.7% stake in the company.

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