Exclusive: Dan Loeb’s Third Point Owns Credit in X, Claritev, Brightspeed

Dan Loeb’s Third Point saw its corporate credit portfolio return 2.9% gross and 2.1% net for the second quarter, for a year-to-date performance of 3% gross and 1.8% net. Unfortunately, that first-half performance has lagged the ICE BofA U.S. High Yield Index.

In their second-quarter webcast, obtained exclusively by Hedge Fund Alpha, the Third Point team highlighted three of their corporate credit positions: X, Claritev and Brightspeed.

Corporate credit

According to the fund’s second-quarter letter to investors, the underperformance in corporate credit mostly stemmed from costs related to hedges made to protect capital during the plunge early in the quarter. Other factors included disappointing results from three of Third Point’s credit positions during the first quarter. The fund took the opportunity to boost...