Hedgie Dan Loeb’s long winning streak continued in October — although a 20 percent drop in his high-profile activist target Sony nearly wiped out his overall gain.
Loeb’s Third Point hedge fund ended the month with a 1.2 percent gain, lagging the S&P 500’s 4.6 percent return. He is still up 19.4 percent for the year, according to a report to investors, a copy of which was reviewed by The Post.
Although his 2013 gain trails the S&P’s 25.3 percent year-to-date gain, Loeb’s fund this year remains one of the industry’s top performers.
Loeb’s big bet on Japan isn’t helping, however. Third Point bet on both Sony and the country’s macroeconomic performance and that is hitting snags.
“Abenomics” — the term used to describe new Prime Minister Shinzo Abe’s efforts to turn the long-stagnant economy around — is still falling short of what investors like Loeb want.
Sony shares are down 17 percent since Loeb’s launched his attack on the company on May 14. In June, Loeb said he had a 6.9 percent economic stake in the electronics conglomerate. Loeb said at that time, according to sources, that he has a long-term commitment to his Japan trades.
Since then, Sony CEO Kazuo Hirai rebuffed Loeb, and George Clooney gave him a tongue-lashing. But the hedgie’s acerbic comments about Sony’s missteps weren’t too far off base.
Sony posted an unexpected second-quarter loss of $197 million on Oct. 31, and slashed its earnings projections by 40 percent. The stock fell 11 percent.
Some of Loeb’s other stock picks fared better in October. Nokia, a new position announced last month, gained 17 percent. Loeb’s latest activist target, Sotheby’s, rose 5.6 percent.