15 Most Feared Activist Hedge Funds

5. Third Point

Portfolio Size: $7.8 Billion

New York-based Third Point is one of the 15 most feared activist hedge funds known for its activist campaigns against corporate boards like at Advance Auto Parts Inc (NYSE:AAP). The hedge fund is known to instigate changes in various companies to maximize shareholder value.

Founded in 1995 by Dan Loeb, the activist hedge fund is back to winning after gaining 3.5% in 2023, recouping some of the 22% loss in 2022. The outperformance continued in the first quarter of 2022, with its Offspring fund up 8% and Ultra fund up 8.7%.

The activist hedge fund deploys an opportunistic event-driven approach to search for high-risk, high-reward opportunities.  It also boasts an extensive history of pushing for changes in operations or entire portfolios to enhance long-term returns for investors by interacting with established, publicly traded firms. Part of the changes involve management changes and pushing for seats on the company’s board to be part of the decision-making process, as at Advance Auto Parts Inc (NYSE:AAP).

With a portfolio value of $7.8 billion, the activist hedge fund primarily invests in technology stocks and services sector companies. One of its latest activist campaigns was at Advance Auto Parts Inc (NYSE:AAP), where the hedge fund gained three board seats that gave it much-needed power to influence the company’s decision-making process and strategic direction.