Third Point LLC
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Date updated:10-12-2008

Third Point, LLC is a $3.2 billion dollar hedge fund with a focus on activist investing. It was founded in 1995 by Daniel Loeb with $3.3 million from family and friends. Loeb is well known in the hedge fund world for his attacks on what he views as greedy executives who also happen to be depressing shareholder value.

Third Point has posted an average annual return of 28.9 percent since Loeb founded the firm in 1995, he says. That’s more than double the 12.5 percent gain logged by similar hedge funds during that period, according to Credit Suisse First Boston Tremont Index LLC.

Loeb often refers to what he does as “the moral-indignation business.” Loeb’s goal is to shame companies into replacing their CEOs, shaking up their boards—whatever it takes to boost the value of his investment.

For instance, in the 13D filing he wrote to protest the management of Star Gas he asked the CEO, “How is it possible that you selected your elderly 78-year old mom to serve on the Company’s Board of Directors and as a full-time employee?” Loeb wondered. “Under what theory of corporate governance does one’s mom sit on a Company board?”

In 2005, The New Yorker did this profile.

Paul Kedrosky also keeps track of the collected works of Dan Loeb.

And in James Altucher’s book, he profiles several Third Point situations.

Dan Loeb

symbol name last price % change open
  • +
  • MA
    Mastercard Inc
  • $231.16
  • +0.47%
  • $229.74

% of portfolio: 10.9%

People owning MA also tend to own: HPQORCLAAPLBLE.TOCHINACTRPELR.TO

TheStreet.com Rating: B What is this?

  • +
  • CCU
    Compania Cerv Uni
  • $37.0182
  • +3.46%
  • $35.76

% of portfolio: 6.9%

People owning CCU also tend to own: FLSCHSFISVIRMAHFDCILA

TheStreet.com Rating: B+ What is this?

  • +
  • STR
    Questar Cp
  • $39.59
  • -1.47%
  • $39.83

% of portfolio: 6.0%

People owning STR also tend to own: BEZBTUCATYHCNLOGINSCAA

TheStreet.com Rating: B- What is this?

  • +
  • MSFT
    Microsoft Corpora
  • $29.62
  • -0.54%
  • $29.67

% of portfolio: 5.9%

People owning MSFT also tend to own: AAPLAMDCSCODELLGOOGIBMINTC

TheStreet.com Rating: B What is this?

  • +
  • BEAS
    Bea Systems
  • $0.00
  • 0.00%
  • $N/A

% of portfolio: 5.1%

People owning BEAS also tend to own: AMGAMTBCRBEAVCERNCOGNDBD

TheStreet.com Rating: No Rating What is this?

  • +
  • CY
    Cypress Semicondu
  • $9.57
  • -1.24%
  • $9.54

% of portfolio: 3.4%

People owning CY also tend to own: APSGTRADXMSRZMHAPCAPPAUY

TheStreet.com Rating: No Rating What is this?

  • +
  • PXP
    Plains Expl&prod
  • $26.39
  • -2.48%
  • $26.90

% of portfolio: 3.3%

People owning PXP also tend to own: COGFSTHYSLINFAQSFTSOVVLY

TheStreet.com Rating: C- What is this?

  • +
  • MWV
    Meadwestvaco Corp
  • $26.28
  • -0.34%
  • $26.21

% of portfolio: 3.3%

People owning MWV also tend to own: ABFSBGERJFISHMCPBRRMBS

TheStreet.com Rating: B- What is this?

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Portfolio not tracked!

10/07/2008 13:25 PM CDT Asked by beefandy
earn cash make money online
best acne treatment
natural acne treatment

09/29/2007 10:43 AM CDT Asked by -2cents
They have enjoyed huge success from the easy to understand companies. I guess their strategy of long term ownership is what works.

bridging loans bridging finance Adverse credit mortgage Buy to Let Mortgage

08/17/2007 02:09 AM CDT Asked by Themaker777
Buffet and munger only buy simple easy to understand companies.

07/19/2007 23:49 PM CDT Asked by DogBones
On July 12, 2007, Third Point LLC disclosed in a 13D filing that it had acquired a 7.2% stake in Atmel Technologies (ATML). Third Point did not report a stake in ATML as of March 31, 2007.

The shares were acquired between May 14 and July 11 at an average price of approximately $5.45 per share.

This does not appear to be a passive stake.

07/19/2007 23:28 PM CDT Asked by DogBones
On July 16, 2007, Third Point LLC disclosed in a 13G Filing that it had acquired a 9.2% stake (2.2 million shares) of Flamel Technologies (FLML). This is a substantial increase from the 225,000 shares that Third Point reported as of March 31, 2007.

Flamel is already under pressure from activist fund Redwood Asset Management which is calling for a sale of the company.

07/19/2007 22:55 PM CDT Asked by DogBones
On July 16, 2007, Daniel Loeb’s Third Point LLC filed an amended 13D for PDL BioPharma (PDLI). It included a letter sent to the non-management board members reiterating its demand that the CEO Mark McDade be promptly terminated.

An excerpt from the letter:

Mr. McDade's record of incompetence, egregiously bad business judgment and serious ethical lapses has been well documented by one of PDL's founders, numerous current and former employees, as well as by Third Point. These concerns undoubtedly have been weighing on your minds as you have been considering the future of the Company. It is abundantly clear that the most immediate, positive, obvious and profoundly shareholder-friendly action that you can and should take is to remove Mark McDade as CEO of our Company.


Read the whole thing.

Link Here

06/23/2007 02:21 AM CDT Asked by OptionsMon
Just a note:
On 6/21/2007, MA was up 2.27% when the rest of this portfolio was in the red and the Dow was down over 180 points. MA was very strong today when the rest of the market turned over hard. That says something about the conviction of big holders in MA. I was impressed...

06/15/2007 00:31 AM CDT Asked by Buzzbait
Take no prisoners

12/06/2006 17:23 PM CST Asked by Jim Cook
MCD get the fat out
NYSE maybe
SHLD going noplace

11/30/2006 10:04 AM CST Asked by Sammy Lee
hilarious manager

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