Third Point Down 3.6% In September: Liquidations To Shift From Gold Back To Stocks Next?

One of the sterling performers in the hedge fund arena so far has just gone negative in several of his hedge funds for the year after another painful month. And if one of the best is unch, what can the rest say? Remember when we said 25% of the hedge fund space may be "redeemed"? We were being very optimistic...

Per Third Point, whose latest top holdings can be found here:

Dear Prospect,


Please find the following estimate of the net returns of funds managed by Third Point LLC for the month of September and for the year 2011.


In case we are right, now that gold has seen it dose of liquidations, hedgies will next move to dumping their stock holdings. Which means that as a preemptive attempt to defect first, the stock most held by hedge funds will be the first to go, particularly the winners among them. Conveniently, ss a reminder, here are the 50 most widely held hedge fund names as of June 30, per Goldman Sachs.