NEW YORK, April 1 (Reuters) -

Billionaire investor Daniel Loeb's hedge fund Third Point

ended the first quarter with its main fund Offshore up 8%, while

the Ultra fund rose 8.7%, keeping performance gains seen at the

end of last year going into 2024, a source familiar with the

matter said.

The funds' returns were mainly driven this year by equities,

the source added, but credit and venture capital strategies also

boosted results.

Third Point pursues a number of investment strategies

including activism where it sometimes pushes companies to make

changes to perform better.

Early 2024 numbers show an ongoing improvement in

performance after the fund suffered a 22% loss in 2022 and

gained 3.6% last year.

The top engine to gains this year included bets on

Advance Auto Parts ( AAP ) and Bath & Body Works ( BBWI ), both

companies where Loeb and his team pressed for changes and the

companies announced new board members.

Electricity and power generation company Vistra ( VST )

helped Third Point's performance too, as it concluded the

acquisition of a nuclear power generator.

Big tech firms Amazon.com ( AMZN ) and Meta Platforms ( META )

were also contributors.

For years, Third Point has been among the industry's

most closely watched hedge funds for indications of trends in

the industry.

Recently, Loeb's firm has made additional inroads into

credit, which is already part of its strategy. Third Point is

raising a

private credit fund

and has plans to launch a corporate credit fund this

summer, the source said.

Third Point's assets under management ended March at $11.5

billion, roughly $700 million less than a year earlier.