Tuesday, 21 October 2014
Last updated 1 hour ago
Mar 15 2011 | 2:53am ET
In his younger, more activist days, Third Point's Daniel Loeb was renowned for using his pen like a broadsword, cutting apart recalcitrant executives and directors with his inky rapier. But a pen more profane than poison, more coarse than cutting, has emerged in his legal battle with Fairfax Financial.
The e-mails are among the 10 million pages of recently unsealed documents in the Canadian insurer's lawsuit against Third Point, Kynikos Associates and SAC Capital Advisors, among others. Fairfax contends that the hedge funds and others conspired to drive down the company's stock price by spreading false and misleading information in the media.
The saucy e-mails don't necessarily show that, but they do paint Loeb in a less-than-flattering light. In one day alone, he sent a pair of e-mails: one making Fairfax CEO Prem Watsa an offer he'd most certainly refuse, and the other rooting for his demise.
The first went to Exis Capital's Adam Sender, who was also shorting Fairfax. "Prem Watsa bend over the hedge funds have something special for you," Loeb wrote on June 25, 2006. Later that day, he wrote, "die, Prem Die!" to a consultant working for the hedge funds betting against the firm.
Sender, for his part, apparently topped Loeb in sexually explicit language: Reuters would not even reprint his e-mail, which implied that Watsa "would set a record for a certain sexual act involving swallowing if he ever went to jail."
Even more inflammatory, Loeb referred to Watsa as "Hitler himself" in a 2003 instant message. And Fairfax said Loeb also called Watsa, who is of Indian descent, a "schwarze," Yiddish for black.
"It's unfortunate that your readers are going to be viewing this entirely from plaintiff's spin on snippets of dated personal e-mails of Daniel Loeb's, without the context of actual documents in this case," Loeb's lawyer, Bill Carmody, complained to Reuters. Sender told Reuters that the e-mails were "trivial and meaningless."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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