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Third Point Sees Opportunities In Energy Debt Amid Oil Rout

Some interesting comments from Third Point RE call this morning on the conference call. See some select comments regarding Third Point LLC. Also see Third Point's Q2 letter to investors here.

Also see Loeb on oil from a recent investor meeting.

Daniel Loeb - Third Point LLC - CEO

Thanks, John and good morning everyone. The Third Point Reinsurance investments portfolio managed by Third Point LLC returned 1.7% in the Second quarter of 2015. Net of fees and expenses versus returns for the S&P and CS event driven indices of 0.3% and 0.4% respectively for the quarter. The Third Point Reinsurance account represents approximately 12% of assets managed by Third Point LLC. Strong performance in April and May outweighed a challenging June, allowing us to post positive results for the quarter.

The Third Point equity portfolio returned 2.7% on average exposure during the second quarter handily outpacing the S&P, performance was led by strength in several core US based positions, especially in the consumer sector. Increased short exposure in 2015 has helped the portfolio in periods of market volatility including in June. And we continue to increase this exposure through both hedges and single name equity positions.
Our top equity contributors to the second quarter were Nomad Holdings, Yum! Brands, Inc. (NYSE:YUM) Brands, The Dow Chemical Company (NYSE:DOW), SunEdison and Social Finance.

Our portfolio includes many positions primed for events before year-end. Our corporate credit book lost 2.7% on an average exposure in the...


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