UPDATE 3-Loeb's Third Point rises 8% in Q1, driven by activist strategy, source says

(Adds context in paragraph 1, Bridgewater's performance in final paragraph)

By Carolina Mandl

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%, extending last year's gains with successful activist bets, a source familiar with the matter said.

Credit and venture capital strategies also boosted results, the source added.

Third Point's investment strategies include activism to push companies for changes.

Early 2024 numbers show ongoing improvement in the fund's performance after a 22% loss in 2022 and 3.6% gain last year.

The top engines for gains this year included bets on Advance Auto Parts and Bath & Body Works, companies where Loeb and his team pressed for changes that resulted in new board members.

Power generation company Vistra helped Third Point's performance as it closed the acquisition of a nuclear power generator.

Big tech firms Amazon.com and Meta Platforms were also contributors.

For years, Third Point has been among the industry's most closely watched hedge funds for industry trends.

Recently, Loeb's firm has made additional inroads into credit, raising a

private credit fund

with plans to launch a corporate credit fund this summer, the source said.

Third Point ended March with $11.5 billion in assets under management, about $700 million less than a year earlier.

As the first quarter ended, hedge funds have started to disclose returns to investors.

Bridgewater Associates, founded by billionaire Ray Dalio, had its flagship Pure Alpha 18% fund up 15.9% in the quarter, said a source familiar with the matter. Bloomberg reported earlier on the fund's performance.

(Reporting by Carolina Mandl in New York; Additional reporting by Svea Herbst-Bayliss; Editing by Mark Porter and Richard Chang)