By Svea Herbst-Bayliss
BOSTON (Reuters) – Billionaire investor Daniel Loeb is taking back the reins as sole chief investment officer at his hedge fund Third Point LLC, less than one year after he appointed long-time colleague Munib Islam to be his co-chief investment officer, according to a letter the firm sent its investors.
Loeb, who is about to celebrate his 25th anniversary at Third Point, told investors about his decision in a letter on Tuesday.
Islam will be leaving the firm and will continue to advise it in a consulting capacity until the end of the year.
Third Point has built a reputation as an influential activist shareholder by pushing for changes at companies such as Sony, Prudential Plc <PRU.L> and Campbell Soup Co <CPB.N> in the last few years, the letter said.
Like many hedge funds Third Point lost money in the first quarter and has seen assets decline to roughly $14 billion (11.4 billion pounds) this year. In an earlier letter to investors, Loeb said that Third Point had not adequately prepared for a possible full-blown pandemic and was caught flat-footed when the world was essentially shut down to blunt the virus’ spread.
Its heavy bets on stocks, especially in the aerospace, airline and auto-related sectors, hurt performance which was down 16% at one portfolio in the first three months of 2020, according to an earlier letter.
(Reporting by Svea Herbst-Bayliss in Boston; Editing by Lisa Shumaker)