Third Point Investors Ltd - Feeder fund that invests in the Third Point Offshore Fund - Says master fund generated 7.6% gain in fourth quarter of 2023, up sharply from 1.2% a year prior, with contributions from equity longs, risk arbitrage, and corporate credit offset modestly by equity shorts and hedges. Third Point adds that most of the major detractors during the first and second quarters rebounded in the second half of the year. Alongside its successful risk arbitrage positions in Activision Blizzard and US Steel Corp, the firm says that this resulted in equity returns above the benchmark indices for the period. Activision Blizzard was bought by Microsoft Corp for about $69 billion in October, and US Steel is proposed to be bought for $14.1 billion by Japan’s Nippon Steel.
Third Point says that the top contributors in the fourth quarter were Bath & Body Works Inc, Microsoft, Pacific Gas & Electric Co, Amazon.com Inc and US Steel. Third Point Investors says: ‘The investment manager sees a constructive backdrop for both equities and credit in 2024, as it continues to find high-quality companies trading at reasonable valuations.’
Current stock price: flat at $20.71 in London on Wednesday.
12-month change: down 2.0%
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