Loeb, Laffont Hedge Funds Start Year With Big Gains

Discussion in 'Wall St. News' started by ajacobson, Feb 4, 2018.

  1. So far, it’s been a good year for hedge fund managers Dan Loeb and Philippe Laffont.

    Loeb’s Third Point Ultra fund, which has $19 billion in assets, returned 5.5 %in January and his Third Point Offshore fund rose 3.7%, and Laffont’s Coatue Qualified Partners surged 9.9 %last month, according to a Bloomberg article citing investor documents.

    Loeb ended the year up 18 %in his flagship offshore fund, while Laffont was up 24%.

    Both managers attribute the gains to the surge in technology stocks. The Nasdaq Composite Index gained 7.4 %in January. Shares of Alibaba Group Holding Ltd., Third Point’s second-largest holding and Coatue’s third-biggest position, jumped 18%.

    Loeb has stated that his hedge fund, which has a team that focuses on betting against securities or short selling, has increased its focus on short sales during the past two years.

    The solid start by Third Point and New York-based Coatue stands in contrast to David Einhorn’s Greenlight Capital. Einhorn’s main fund posted a 6.6 loss in January, which was the worst monthly performance since October 2008, according to the Bloomberg article
  2. dealmaker


    Loeb doing well while he is struggling must really piss off Ackman...
    Last edited: Feb 4, 2018
  3. vanzandt


    Just curious.... is there a requirement to file a 13G if one is short 5% or more of a company's stock?

    Section 104. Rule 13d-2 — Filing of Amendments to Schedules 13D or 13G
    Question 104.01

    Question: When a Schedule 13D or 13G reporting person sells the subject securities short, does the reporting person's beneficial ownership change?

    Answer: No. Short sales normally will not change a reporting person's Rule 13d-3 beneficial ownership since such sales do not change the amount of shares over which the person has "voting or investment power." However, short sales may trigger a requirement to amend the Schedule 13D pursuant to Rule 13d-2 unless all applicable changes in the facts previously set forth in the reporting person's Schedule 13D are not material. For example, the short sale may represent a change in the source of funds (Item 3), a possible shift in purpose (Item 4) (particularly to the extent that a plan or proposal to dispose of securities of the issuer was not disclosed previously), a "transaction" in the subject security (Item 5), as well as a "contract, agreement, understanding, or relationship ... with respect to ... securities of the issuer" (Item 6) or require that an exhibit be filed (Item 7). The same analysis applies to a pledge of the securities in a secured transaction or the writing of call options. [Sep. 14, 2009]
    Last edited: Feb 4, 2018