Third Point Exits SunEdison, Phillips 66 Stakes in Third Quarter

  • Hedge fund sells SunEdison shares valued at $370.1 million
  • Loeb's firm buys new positions in Kraft, Time Warner Cable

Third Point, the hedge fund firm run by Daniel Loeb, sold off stakes in SunEdison Inc. and Phillips 66 in the third quarter, while buying new positions in Kraft Heinz Co. and Time Warner Cable Inc.

The New York-based firm sold 12.4 million shares in SunEdison valued at $370.9 million and more than 3.2 million shares of Phillips 66 worth $261.8 million as of Sept. 30, according to a quarterly filing on Friday with the U.S. Securities and Exchange Commission.

The hedge fund owned Kraft shares worth $582.3 million and Time Warner shares valued at $233 million at the end of the third quarter. Third Point also bought new stakes in Avago Technologies Ltd. and Danaher Corp.

Third Point said in an Oct. 30 letter that the environment for wagering on falling securities, or short selling, is “attractive” and that it has more bets against individual companies than on them. The hedge fund said it cut its net exposure by almost a third by selling holdings and putting on new short trades over the past few months.

Fund Performance

Net exposure is calculated by subtracting the percentage of a hedge fund’s short positions, or bets on falling securities, from its long holdings, or wagers on rising stocks and bonds.

Third Point’s offshore fund is down 4.5 percent in the first nine months of the year after losing 8.9 percent in the third quarter, according to the investor letter. Hedge funds posted a gain of 0.1 percent this year through September, according to data compiled by Bloomberg.

Money managers who oversee more than $100 million in U.S. equities must file a Form 13F within 45 days of the end of each quarter to list their holdings in stocks that trade on U.S. exchanges, as well as options and convertible debt. The filings don’t show non-U.S. traded securities or wagers against stocks.

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