SEC Third Point
SEC Drops Investigation of Third Point Hedge Fund
The Securities and Exchange Commission has closed its investigation of Daniel Loeb’s Third Point LLC, a New York-based hedge fund. Third Point which manages $3.4 billion assets was investigated by the regulator over its talks with other hedge funds. In a letter to investors, the hedge fund told its limited partners that the investigation was over. If investors were considering leaving the firm over the issue they may reconsider because in the same letter Third Point reported that it was up 16.6% in the first three months of the year.
Representatives for Third Point wouldn’t comment beyond the letter, which was dated June 11. The letter was posted Monday on the financial-news blog Dealbreaker.
In 2008, Third Point said in a letter to investors that the SEC was investigating it for its communication with other hedge fund managers, something Third Point believed was “in the best interest of our investors.”
“Such conversations permit us to test our hypotheses and refine our thinking,” the 2008 letter said.
In the June 11, 2010, letter about the investigation, Third Point reported that its Third Point Partners LP fund was up 16.6% through the first three months of the year.
That fund, along with the firm’s larger Third Point Offshore Fund Ltd., was still up double digits through May 31 after a rough month, according to another investor letter sent earlier this month.
“We remain registered with the SEC, and believe that the exacting standards of compliance to which we adhere are consistent with industry best practices,” the letter to the fund’s investors says. Source
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