Third Point LLC, the firm headed by Dan Loeb, was at the forefront in the change of Yahoo's board a couple of years back. Now, that activism has borne fruit, earning for the buyout firm US$655 million from the buyback done by Yahoo of shares owned.

The Sunnyvale, Ca based Yahoo Inc is purchasing Yahoo shares owned by Third Point at US$29.11 per share. This represents a 129% return on investment for the firm. This is over and above the 20 million other shares owned by Third Point still in their name or had previously sold. As a result of the buyback, two Third Point installed directors, namely Harry Wilson and Michael Wolf would be leaving the Yahoo board.

According to a statement from Loeb. "Harry, Michael and I are pleased to have played key roles in Yahoo's resurgence since we joined the board last spring. Since our board's rigorous search led us to hire Marissa Mayer as CEO, Yahoo's stock price has nearly doubled, delivering significant value for shareholders." 

The hedge fund firm's 12.6% return for the first two quarters of 2013 are amongst the best in the industry. According to Hedge Fund Research Inc, the average return is pegged at 3.6%.