Hedgie Dan Loeb has joined the ranks of big money managers to scale back their business by returning capital to investors.
Loeb plans to return around $1.4 billion to his Third Point investors at the end of the year, he told investors in his third-quarter letter dated Oct. 22.
Third Point’s assets have grown to $14 billion since 2009. Loeb is up 24 percent on an annualized basis since then, far outdoing most of his peers, and is up 18 percent this year through September.
But Loeb has met resistance with two of this year’s activist plays, Sony and Sotheby’s, which implemented a “poison pill” shareholder plan to thwart his moves. He also announced a new equity position in Nokia, the Finnish cell phone maker, in the investor letter.
Loeb isn’t the only hedge fund mogul to see fewer opportunities these days.
As The Post reported last month, Seth Klarman, 56, is expected to return about $3 billion to investors from his $28 billion Baupost Group, the fourth largest US hedge fund.
Some other well-known hedge funds that are either giving money back or refusing to take in more capital include: Highfields Capital, Aurelius Capital, Pennant Capital, Blue Mountain Credit and Viking Capital.