Daniel Loeb, CEO of the $5.6 billion New York–based activist hedge fund firm Third Point, has revealed in a letter to investors that his funds had suffered from a sharp reversal in energy and financial stocks during the first three full weeks of July, sustaining losses “in the high single digits” that effectively erased all of its gains for the quarter. (The Third Point Partners Fund was up 8 percent for the second quarter and 3.6 percent for the year before its July troubles.) In addition, Loeb disclosed in his July 25 second-quarter investor letter, a copy of which has been obtained by Alpha, that the Securities and Exchange...