Third Point Management, a New York-based investment advisor, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned -4.1% net in the first quarter compared to a 7.5% return for the S&P 500 INDEX (TR) and a 7.9% return for the MSCI WORLD INDEX (TR). In addition, please check the fund’s top five holdings to know its best picks in 2023.
Third Point Management highlighted stocks like UBS Group AG (NYSE:UBS) in the first quarter 2023 investor letter. Based in Zurich, Switzerland, UBS Group AG (NYSE:UBS) provides financial management solutions. On May 26, 2023, UBS Group AG (NYSE:UBS) stock closed at $19.85 per share. One-month return of UBS Group AG (NYSE:UBS) was -0.95%, and its shares gained 4.64% of their value over the last 52 weeks. UBS Group AG (NYSE:UBS) has a market capitalization of $61.688 billion.
Third Point Management made the following comment about UBS Group AG (NYSE:UBS) in its Q1 2023 investor letter:
“We initiated a position in the Op Co and Hold Co paper of Credit Suisse just prior to its takeover announcement by UBS Group AG (NYSE:UBS). As one of the few funds remaining with the mandate to pick the “fulcrum security” across the capital structure, we determined that once the emergency rescue acquisition was announced, the equity of UBS presented the more compelling way to invest in this situation and rotated capital from CS bonds into UBS stock. We see the rescue of CS as a transformative deal for UBS at a highly compelling price and with downside-protected terms.
The pro forma UBS will be the second largest global wealth manager and third largest European asset manager, enhancing UBS’s competitive positioning and scale in its most attractive capital-light and high return-on-equity businesses. The deal is highly synergistic – hence, UBS’s early guidance that it can rationalize 50% of CS’s existing expense base – but also creates additive geographic and product diversification. Credit Suisse adds to UBS’s stronger footholds in Asia and Latin America and forges a more balanced asset management portfolio across traditional and alternative capabilities…” (Click here to read the full text)
photo by scott graham on Unsplash
UBS Group AG (NYSE:UBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held UBS Group AG (NYSE:UBS) at the end of the first quarter 2023 which was 16 in the previous quarter.
We discussed UBS Group AG (NYSE:UBS) in another article and shared the list of best diversified bank stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
