BOSTON, July 2 (Reuters) - Billionaire investor Daniel Loeb’s main hedge fund returned 6 percent during the first six months of 2014, beating many rival managers’ largely lackluster returns but trailing his own performance from last year.
Loeb’s $14 billion firm Third Point told investors that its Third Point Offshore Fund gained 1.9 percent in June, leaving it up 6 percent for the first half of the year.
While the gains are not far off the S&P 500’s 7.1 percent increase and handily trump the average hedge fund’s 1.77 percent rise in the first half, according to data from Hedge Fund Research, they are nowhere near as strong as last year’s returns when his flagship fund ended the year with a 25.2 percent gain.
Loeb’s go-anywhere trading strategy has made the firm one of the industry’s most successful with a 17.8 percent annualized return. But 2014 is proving to be tough for many managers as some of the industry’s biggest stars have been surprised by an earlier drop in tech stocks plus U.S. bonds’ relative strength.
Most managers are still preparing their month-end numbers but Loeb is usually among the first to give investors basic information on how he performed, sometimes acting as a bellwether for industry returns.
Two months ago, Loeb warned investors that bumpy trading could be ahead for the rest of the year.
Reporting by Svea Herbst-Bayliss