Third Point, a $4.6 billion hedge fund run by Dan Loeb, has a 5.2% stake of Internet firm Yahoo ( YHOO), and Loeb has been in a dog fight with its board of directors, as he says it has mismanaged Yahoo and bungled chances to sell the company at a premium. Yahoo has a five-year annualized loss of 12% and is down 2% this year. Yahoo made up almost 30% of Third Point's portfolio late last year, so Loeb has good reason to want its management to do something to boost share returns. Loeb wrote in a letter to Yahoo directors that his firm is "not surprised by this mismanagement given the history of strategic bungling by Yahoo Board Chairman Roy Bostock and founder Jerry Yang, which has been chronicled in our previous letters and in numerous critical media and analyst reports." Yahoo, according to reports, is in talks about selling a stake in China's Alibaba, the New York Times reported Thursday. That would give Yahoo more cash but lacking an inroad into China. Third Point returned 3.8% in January and has a one-year return of 17.5%. The fund's second-largest holding at the start of the fourth quarter was Williams Co. ( WMB), a natural gas transmission company, at 6%.