Daniel Loeb of Third Point Capital is out with his Q3 2011 letter. In the third quarter they were down 6% bringing them to a YTD result of 0.2%. In the letter he talks about a number of fat tail hedges / black swan trades that they have put on that can return 10x-20x should the worst case come to pass. These trades include depegging of middle eastern currencies or a spike in the demand for delivery of physical commodities. The first trade is rather common but the second one is particularly interesting as that is the first I have heard along that line.
The letter goes on to discuss their activist position in Yahoo!, their moves in corporate credit, and some of their ABS positions.
Enjoy.
ThirdPoint - 2011.11.01
No comments:
Post a Comment