Third Point's Biggest Third-Quarter Loss Blamed on Argentina Bet

The transcript discusses an offshore fund's loss in the third quarter, primarily due to Argentinian sovereign debt holdings. Bloomberg's Lisa Brown reports on Third Point's significant losses following the Argentinian presidential primary, where Alberto Fernandez's win led to market instability. Third Point had previously profited from these holdings but was caught off guard by the political shift. They have since sold some debt and expect future recovery despite ongoing volatility.

What was the primary reason for the offshore fund's loss in the third quarter?

• A poor investment decision

• High management fees

• Currency fluctuations

• Increased competition

How did Alberto Fernandez's win in the presidential primary affect the market?

• It led to a market boom

• It stabilized the market

• It caused market volatility

• It had no impact

What was Third Point's expectation regarding the Argentinian bonds after the period of volatility?

• The bonds would recover up to 50%

• The bonds would remain volatile

• The bonds would lose all value

• The bonds would be sold at a loss

What was the historical significance of the Argentinian debt holdings for Third Point?

• They were a new investment in 2019

• They had no impact on the fund's performance

• They were a significant source of profits from 2014 to 2016

• They were always a loss-making investment

How did the unexpected political outcome affect investors' expectations?

• Investors were prepared for the volatility

• Investors anticipated a market-friendly leadership

• Investors expected a leadership that would not support the market

• Investors expected the status quo to change