Fri, Aug 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

It pays to invest in Greek bonds like Third Point

Monday, January 07, 2013

amb
Benedicte Gravrand, Opalesque Geneva: - Daniel Loeb's $10bn hedge fund firm Third Point saw its flagship fund return 21% YTD compared to 13% for the S&P 500, according to media reports (the more leveraged Ultra Fund returned 34%). This is after gaining 3.6% in December, reportedly thanks to contrarian investments in Greek government bonds. Third Point's current top holdings are Yahoo, American International Group (AIG) and gold, along with an activist position in Murphy Oil.

"We have invested profitably in European credit situations in 2012, generating a 35% return on average capital invested over the past six months while nearly tripling our gross investment in the area. Our selective approach to investing in distressed credit during this chaotic time in the region was enabled by two key facets of our investment process, which we have found to be replicable in various stressed environments," Loeb wrote in his Q3-2012 investor letter in October.

The first key facet is that money can be often made in credit situations where assumptions are not rosy "but simply less draconian than those of a market in panic," he explained. Th......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  2. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  3. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  4. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  5. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill