Third Point Investors returns to positive territory in Q4 but lags behind benchmark

‘Lacklustre’ results

Third Point Investors (TPIL) returned to positive territory in the fourth quarter of the year after slumping 17% in the last 12 months, but still lagged behind its relevant benchmarks.

The master fund behind the £670m London-listed closed-ended fund, which invests directly in Daniel Loeb's flagship hedge fund, returned 1.2% over Q4 2022, compared with 9.9% for the S&P 500 and 7.5% for the MSCI World index. According to the firm's Q4 letter, underperformance was due to defensive positioning, stock-specific weakness in large positions and the write-off or markdowns of crypto-related investments.  Key contributors included Pacific Gas & Electric, which was up 30% over the quarter; Bath & Body Works, also up 30%; and the closure of its risk arbitrage position on Twitter...