Third Point, the event-driven firm founder Dan Loeb named after a fast wave on Malibu's famed Surfrider Beach, is seeing fewer perfect south swells than it might like. Ill-timed investments in Target and a tricky merger arbitrage position have helped push the fund to a loss this year. Meanwhile, the firm's investor-friendly stance has made it easy for partners to redeem at a time when liquidity is at a premium.
For the month through April 24, Loeb's flagship Third Point Offshore had lost 2.5%, leaving the fund down 5% for the year thus far. That result comes on top of a 32.18% decline in 2008, a period when the Absolute Return Event Driven Index lost an average 23.35%.
Meanwhile, Third Point's assets have fallen by almost 70%, to...