(This post is part of our series on tracking hedge fund portfolios. If you're unfamiliar with tracking investments they disclose via SEC filings, check out our series preface on hedge fund 13F filings.)

Next up is Dan Loeb's Third Point LLC. Third Point manages a series of hedge funds and focuses on event driven and value oriented investments. Loeb started his hedge fund with $3.3 million in 1995 and today manages billions. To learn how to invest like a prominent hedge fund manager, check out Dan Loeb's recommended reading list. Additionally, we recommend watching a video of Dan Loeb giving some general investing advice.

Reading Felix Salmon's follow up to the NY Magazine article on Investing in Toxic Assets prompted me to issue a rebuttal. If you are immediately afraid of investment opportunities based on media portrayal, this article is not for you. If you are willing to search through facts and perform simple arithmetic in order to out-perform the market, you may want to keep reading.

So.... what is toxic? Toxic to who? How does that impact making money? Let's pretend you are a bank who lends someone $100 at 6%. What is the best outcome that can happen? Well, you eventually receive your $100 back with the 6% interest. Simple economics of a bond, I know.