Third Point posts near-30% returns and reveals Royal Dutch holding
The latest investor letter from Third Point Offshore Investors (TPOU), showed the activist fund made a 12.5% return in the quarter to September, taking its nine-month gain to 29.5% against 13.4% for the MSCI Total Return World Index.
The firm’s biggest gains in the third quarter came from US ‘challenger’ lender Upstart, which rose 153%, and cybersecurity firm SentinelOne which added 26%. UK insurer Prudential (PRU) was another positive contributor following the spin-off of its US business and a successful capital raise in Asia.
Manager Dan Loeb also revealed he had taken a new position in oil major Royal Dutch Shell (RDSB) in order to push the firm to spin off its legacy energy business and focus future investment on low-carbon assets while returning substantial amounts of cash to shareholders.
‘Pursuing a bold strategy like this would likely lead to an acceleration of CO2 reduction as well as significantly increased returns for shareholders, a win for all stakeholders’, argued Loeb.
Investors can expect a further lift in the firm’s value this quarter following the New York listing of Amazon-backed electric vehicle maker Rivian, which is targeting a valuation of up to $60 billion.
Third Point made a small investment in Rivian in 2020 and took what it called ‘a more meaningful stake’ in July 2021. Shares are expected to list by the year end.