BOSTON Oct 22 Hedge fund manager Daniel Loeb,
one of the industry's best performers this year, said his Third
Point took a position in Nokia after the Finnish
communications and technology company said it would spin off its
Devices & Services business to Microsoft.
News that Loeb had taken a stake in Nokia sent the company's
shares up 1.4 percent in New York on Tuesday.
Loeb, discussing his portfolio in his Third Quarter Investor
Letter, said Nokia would have 8 billion euros in cash available
after the deal with Microsoft, and that the bulk of that money
would likely be returned to shareholders. He said a "buyback or
special dividend" is possible, something that should attract new
investors to what he called "new" Nokia.
In the letter, which was seen by Reuters, Loeb also said his
$14 billion fund was as large as he wanted it to be right now
and that he would be returning to investors 10 percent of the
capital in the fund at the end of the year.
Loeb's Offshore Fund has gained 18 percent in the first nine
months of the year. The average hedge fun has gained roughly 9
Other prominent investors, including Seth Klarman at Baupost
Group and Jon Jacobson at Highfields, are also returning some
money to clients.