Third Point To Return Up To $1.4 Billion To Investors

Oct 23 2013 | 1:16pm ET

Its coffers swelled by strong returns this year, Third Point will return capital to investors for the first time at the end of the year.

The New York-based hedge fund, which has about $14 billion in assets, will return about 10% of it to investors "in an effort to moderate" its growth. Third Point's move follows similar decisions by the likes of Baupost Group, Moore Capital Management and Tiger Global Management. Other firms, such as D.E. Shaw Group, have closed to new investment or investors.

Third Point is up 18% this year.

In addition to news of the distribution, Third Point founder Daniel Loeb also announced that the firm bought shares of the Nokia towards the end of the third quarter, after Microsoft Corp. announced plans to buy its devices and services business. Loeb said that the deal will leave Nokia with some €8 billion in cash, "and we expect a meaningful portion of the excess will be distributed to shareholders in the coming quarters."

Loeb also wrote about Third Point's Japanese bets, saying they have "contributed significantly to 2013 returns," and that if Prime Minister Shinzo Abe can complete his reform programs, "we will be eager buyers of additional Japanese stocks."

Loeb did not touch on two of Third Point's more high-profile recent investments, in Sony Corp. and in auction house Sotheby's.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note