U.S. hedge fund Third Point LLC sells 100% of ADRs in Sony: SEC filings

According to regulatory filings, U.S. hedge fund Third Point LLC has sold all American Depositary Receipts (ADRs) that it holds in the Japanese company. In recent months it had been pushing Sony Corp to increase return of stakeholders, including spinning-off of its chip unit.

Despite the sale, Third Point continues to hold a large portion of the company’s Japanese shares, said a source familiar with the fund.

According to regulatory filings, as of December 31, 2019, Third Point held 1.5 million ADRs; as of March 31, 2020, the level came down to 675,000 and as on June 30, the hedge fund disposed off all of its ADRs in the Japanese technology company.

Significantly, U.S. Securities and Exchange Commission filings only show the amount investors hold in U.S. stock. From the U.S. filings, it is not clear the amount Third Point holds in foreign stock or how much it owns in Sony’s Japan-listed common stock.

In a statement, a representative from Sony said, the company does not comment on individual shareholders.

Third Point declined to comment.

In 2019, Third Point had revealed its position in Sony when had it called on the firm to spin off its highly successful chip business and sell off non-core assets, including Sony Financial to position itself as a leading global entertainment company.

That effort marked the second time in six years that Loeb has targeted the Japanese firm.

At that time, Sony had rejected the call to spin off its chip unit, saying it was “a crucial growth driver” and rather than sell Sony Financial, it took full control of the business.

Since April 2019, Sony has been a big winner for Third Point. The company’s shares have surged nearly 80% since April 2019.

Categories: Creativity, Entrepreneurship, Regulations & Legal, Strategy

Tags: , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: