(Bloomberg) -- Dan Loeb’s Third Point lost 11.3 percent on its investments in 2018, only the second time it’s reported a double-digit decline.

The New York-based hedge fund said in a letter to investors Thursday that an 11.9 percent decline in the fourth quarter contributed to those declines. It said its excessive exposure to unhedged long cyclical names and a risk arbitrage position in NXP Semiconductors NV accounted for much of the negative returns.

"Although our performance was disappointing, we took the opportunity to learn from our mistakes, reflect on where our competitive advantages lie, adjust our risk management, and generally improve our processes to drive better results.," Third Point said in the letter.

Third Point said it reduced its net equity exposure in the fourth quarter and believes that its moderate positioning is appropriate for the current environment despite a rally in the first week of 2019.

©2019 Bloomberg L.P.