Hedge fund billionaire Dan Loeb is set to return as much as $1.4 billion to investors in his New York-based firm Third Point in an effort to keep its assets under control.
The New York Times reported that Loeb told investors Tuesday that Third Point’s assets under management has grown to $14 billion mostly due to strong performance from two of its funds. The firm gained 18% in the first nine months of this year.
Third Point is among a growing list of big-name hedge fund firms, including Seth Klarman’s Baupost and New York-based DE Shaw, that are returning money to clients or denying new investors to keep its assets in a manageable level.
Loeb started Third Point in 1995 with $3.3 million in assets.