Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Third Point Gains 17% in 2019 After Betting on Soup and Sony

Stock MarketsJan 30, 2020 07:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Third Point Gains 17% in 2019 After Betting on Soup and Sony

(Bloomberg) -- Dan Loeb’s Third Point LLC gained 17.1% last year boosted by a wager on Campbell Soup Co.

Third Point was able to overcome skepticism that it could turnaround “what most thought was a moribund and declining business,” the firm said in a letter dated Jan. 30.

Campbell shares rose 50% last year, prompting the hedge fund to take some profits and reduce its position to below 5% of the company. Third Point though remains bullish. The business has been stabilized, and a compelling turnaround is underway, Third Point said.

The fund also made money on Sony Corp (T:6758)., betting on its collection of media assets, including its giant video game platform, Hollywood studio and an underappreciated semiconductor business, the firm said.

The fund was punished by an outsized position in Argentine government debt after failing to predict the politics.

“We realize in hindsight that we took our guard down a bit too much and did a poor job of calculating both the political risk and the reflexive reaction of the dollar-denominated debt to the collapse of the local currency,” the letter said.

Third Point was also hit by its short positions, something many hedge funds struggled with as the S&P 500 Index rallied almost 29% -- its best year since 2013. Hedge funds broadly gained 7.8% in 2019, according to Hedge Fund Research.

The new year has kicked off positively as friendly monetary conditions and a “benign” economic backdrop drove the market higher, Third Point said in the letter. The firm remains wary of a number of factors that could upset this, including the spread of the coronavirus, derailment of trade negotiations with China, and the U.S. election.

(Updates to include details on credit wagers in fifth paragraph.)

Third Point Gains 17% in 2019 After Betting on Soup and Sony
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email