Hedge fund manager Daniel Loeb speaks during a Reuters Newsmaker event in Manhattan, New York, U.S., September 21, 2016. REUTERS/Andrew Kelly

NEW YORK (Reuters) - Hedge fund manager Daniel Loeb told investors on Thursday that his $16 billion hedge fund Third Point saw more opportunities in Europe and was positioned to absorb a modest sell-off in U.S. stocks.

Third Point took a position in Italian bank Unicredit Spa and German utility E.ON, the firm said in its first quarter letter. During the first three months of the year, Third Point earned a 5.9 percent return.