Daniel Loeb of Hedge Fund Third Point sent his 2Q10 Letter to Investors. His fund Third Point Partners LP returned -3.5% vs. S&P’s -11.4%. If that is not enough of an outperformance, Loeb pointed out that his fund has bounced nicely and through four weeks of August the funds are up 14-16% year to date.
Long term, he has pulled out an outstanding performance, as quoted in the quarterly letter, his annualized return since inception is 21.6%.
Read his complete letter below:
Third Point Q2 2010 Investor Letter
Loeb stated in his letter that he has about $3.3 billion of assets under management as of June 30, 2010. GuruFocus however only records $906 million of LONG equity stock position in 26 stocks. The rest goes into cash, debt, short position and who-knows-what-else, for he takes bet on a wide variety of investment instruments.
Here are his top long positions:
No. 1: TransDigm Group Inc. (TDG), Weightings: 10.14% - 1,800,000 Shares
TransDigm Group, through its wholly-owned subsidiaries, including TransDigm Inc. Transdigm Group Inc. has a market cap of $2.88 billion; its shares were traded at around $58.42 with a P/E ratio of 18.3 and P/S ratio of 3.8. Transdigm Group Inc. had an annual average earning growth of 20.7% over the past 5 years.
Alcon, Inc. is the world's eye care company. Alcon Inc. has a market cap of $48.23 billion; its shares were traded at around $160.64 with a P/E ratio of 21.5 and P/S ratio of 7.4. The dividend yield of Alcon Inc. stocks is 2.1%. Alcon Inc. had an annual average earning growth of 18.3% over the past 10 years.
CIT Group Inc. is a bank holding company that provides financing and leasing capital for commercial companies throughout the world. Cit Group Inc. has a market cap of $7.42 billion; its shares were traded at around $37.07 with and P/S ratio of 1.8.
PHH Corp is a outsource provider of mortgage and vehicle fleet management services. Phh Corp. has a market cap of $1.08 billion; its shares were traded at around $19.42 with and P/S ratio of 0.4.
Health Net, Inc. is an integrated managed care organization which administers the delivery of managed health care services. Health Net Inc. has a market cap of $2.45 billion; its shares were traded at around $24.65 with a P/E ratio of 10.1 and P/S ratio of 0.1. Health Net Inc. had an annual average earning growth of 5.5% over the past 5 years.
Airgas, Inc., through its subsidiaries, is the largest U. Airgas Inc. has a market cap of $5.57 billion; its shares were traded at around $66.72 with a P/E ratio of 23.4 and P/S ratio of 1.4. The dividend yield of Airgas Inc. stocks is 1.3%. Airgas Inc. had an annual average earning growth of 15.1% over the past 10 years. GuruFocus rated Airgas Inc. the business predictability rank of 4-star.
GuruFocus Follows Daniel Loeb’s complete stock portfolio and you can access the information here.
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