Third Point LLC has sold its 4-million-share stake in Facebook Inc, the hedge fund's billionaire founder said on Wednesday, following disappointing results from the social networking giant.

"Yes, that was a very disappointing quarter and we exited the name," Third Point's Daniel Loeb said, referring to Facebook, on a conference call that followed Third Point Reinsurance's results.

Facebook shares fell some 19 percent on Thursday, wiping off $119 billion of the company's market value, after it warned that profit margins would take a hit from rising user privacy costs and slowing revenue growth.