Wednesday, 22 October 2014
Last updated 15 hours ago
May 2 2014 | 2:11pm ET
April has turned to May, but Third Point’s Daniel Loeb is in no mood to sell and go away.
Loeb told his investors that he’d be ignoring the old market maxim this year, noting that the recent pullback in stock prices had made equities attractive.
The activist said that he was too optimistic earlier this year, with some sectors “clearly exhibiting bubblelicious valuations.” But prices have come back down to “attractive levels,” although it isn’t exactly shooting fish in a barrel.
“Four months into 2014, it now seems evident that investment performance will require a combination of good stock selection, patience and deft trading,” Loeb wrote.
Loeb’s performance in the first quarter was not bad, in spite of his premature enthusiasm. Third Point’s flagship returned 3.5% on the quarter, with Dow Chemical Co. among its best performers. But that hasn’t inclined Loeb any more kindly towards the company, which he says should spin-off its petrochemical business.
Dow rejected that proposal in February, but Loeb is undeterred: “Management needs to focus on what is driving this underperformance and how to cure it,” he wrote. “Dow’s integrated strategy does not maximize profits.”
But Loeb was also unusually generous towards a company that has spurned him, saying that Dow’s “level of shareholder engagement has also risen notably, demonstrating an admirable and strong commitment to addressing long-standing concerns.”
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...