Loeb, Laffont Hedge Funds Start Year With Big Gains

Feb 2 2018 | 6:56pm ET

So far, it’s been a good year for hedge fund managers Dan Loeb and Philippe Laffont.

Loeb’s Third Point Ultra fund, which has $19 billion in assets, returned 5.5 %in January and his Third Point Offshore fund rose 3.7%, and Laffont’s Coatue Qualified Partners surged 9.9 %last month, according to a Bloomberg article citing investor documents.

Loeb ended the year up 18 %in his flagship offshore fund, while Laffont was up 24%.

Both managers attribute  the gains to the surge in technology stocks. The Nasdaq Composite Index gained 7.4 %in January. Shares of Alibaba Group Holding Ltd., Third Point’s second-largest holding and Coatue’s third-biggest position, jumped 18%.

Loeb has stated that his hedge fund, which has a team that focuses on betting against securities or short selling, has increased its focus on short sales during the past two years.

The solid start by Third Point and New York-based Coatue stands in contrast to David Einhorn’s Greenlight Capital. Einhorn’s main fund posted a 6.6 loss in January, which was the worst monthly performance since October 2008, according to the Bloomberg article.

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