Third Point slumps as growth firms drag investment titan down

London-listed investment vehicle Third Point Investors suffered a 22.6 per cent plunge in the value of its assets in the first half of the year as it weathered “one of the most challenging” periods it has faced.

In a trading update today, the firm run by notorious activist investor Daniel Loeb said turbulence had caused its investments to fall more sharply than benchmark indices the MSCI World Index and the S&P 500 Index, which suffered a 20.3 per cent and a 20 per cent fall respectively.

Third Point’s growth-oriented investments like cyberfirm SentinelOne and EV-maker Rivian dragged down the performance of its portfolio as soaring inflation caused investors to flee growth-focuses firms.

Shares in Third Point Investors also tumbled 18 per cent in the period.

Bosses yesterday described the first six months of the year as “one of the most challenging half-year calendar periods in its 27-year history”, but said they were confident Loeb would steer through the volatility.

“Daniel Loeb and his team are known for their ability to pivot when market circumstances shift, and it certainly feels like regime change is in progress now that global economies are facing such countervailing forces,” Chair of the firm Rupert Dorey said.

“While Third Point, as a more directional investment manager, is not immune from the initial fallout that accompanies these pivotal moments, it has a 27-year history of deploying capital thoughtfully in their aftermath.”

The results come after Loeb’s Third Point hedge fund – which manages the London-listed vehicle – snapped up a $1bn stake in Disney in August and began agitating for changes in strategy.

In an interview with the Financial Times, Disney chief Bob Chapek said he had resisted Loeb’s efforts to force it to lighten its debtload by offloading sports network ESPN.

“If everyone wants to come in and buy it . . . I think that says something about its potential,” Chapek said. “I think its potential is within the Disney company.”

The top exec said he was confident in Disney’s ability to restore growth at ESPN, a service best known for showing US live sports like National Football League and Major League Baseball.

Third Point shares are down 25 per cent in the year to date.