Dan Loeb's Third Point is facing a flood of customer withdrawals after racking up losses of 1.6% so far this year on the back of a 21.8% decline in 2022, underperforming both rival firms and the wider market, according to a report by The Wall Street Journal.

The report cites unnamed sources with knowledge of the matter as revealing that investor withdrawals requests at the end of September amounted to $850m, or more than 7% of the firm’s assets, adding to the $1bn or so that was redeemed from Third Point funds during the first eight months of the year.

More than $1bn of Third Point’s total capital is reportedly held under terms that prevent it from being easily withdrawn. Investors asking for their money back are repaid over the course of several quarters.

Loeb though remains confident he can turn things around saying in an interview with The Wall Street Journal that: "I’m not thrilled with the results, but each time we’ve had 20% drawdowns, we’ve more than made up for them.”