Loeb’s Third Point Hedge Funds Slump as Much as 10% in January

(Bloomberg) -- Dan Loeb's Third Point is emerging as one of the biggest known hedge fund losers of January as volatile stocks hurt some money managers.

The firm's largest Third Point Offshore fund lost 7.6%, while the leveraged Third Point Ultra fund slumped 10%, according to an investor letter seen by Bloomberg. The declines erased a portion of the 23% gain in the Offshore fund and a 27% surge in the Ultra fund last year, another document shows.

A spokesperson for the New York-based investment firm declined to comment. Third Point managed about $18 billion at the end of 2021 and is best known for its activist bets.

A selloff in growth stocks last month triggered by prospects of interest rate hikes in response to spiraling inflation whipsawed some money managers. Marshall Wace, one of the biggest stocks-focused hedge funds, turned net short growth stocks for the first time in a decade. The S&P 500 Index slumped more than 5% during the month, its worst monthly decline since March 2020. 

Read More: Paul Marshall's Hedge Fund Makes Historic Move on Value Stocks

It's not clear exactly what caused the losses in the Offshore fund in January. Some of its top disclosed holdings at the end of last year, such as SentinelOne Inc, Danaher Corp. and Amazon.com Inc, slumped more than 10% last month.

©2022 Bloomberg L.P.