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Dan Loeb Offers Mea Culpa For 'Mediocre' Returns

Dan Loeb Offers Mea Culpa For 'Mediocre' Returns
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Activist investor Daniel S. Loeb used bad judgement in exiting positions and poor trading strategies in volatile markets, according to his quarterly letter to investors.

Loeb's hedge fund Third Point LLC offered a return last year of 5.7 percent -- compared with the S&P 500 Index's 13.7 percent return.

Loeb called his results "mediocre."

The apparently chastened Loeb said that in the face of increased market volatility, Third Point has cut its "gross and net" market exposure.

Loeb didn't offer much hope for 2015, "where scary events lurk around each corner."

Loeb said investors are confronted by a "haunted house market," and offered a litany of woes which veered into politics.

The billionaire bemoaned what he said is the U.S. government's "decline in respect for the rule of law," citing tax rules he said are designed to "intimidate citizens and interfere with legal commerce."

Loeb is also troubled by what he sees as a U.S. "unwillingness to promote democracy abroad" in the face of violence in Syria and Iraq, as well as Ukraine.

Given the recent drop in oil prices "we're starting to see value in energy-related names," Loeb said.

In general, however, "we're investing in companies with solid cash flow and consistent growth."

Loeb also plugged current Third Point investments including FANUC CORP UNSP ADR (OTC: FANUY), as well as Amgen, Inc. (NASDAQ: AMGN), and said both could see upside.

Image credit: Henry Han, Wikimedia

Posted-In: Dan Loeb Daniel S. Loeb Third Point LLCAnalyst Color Hedge Funds Analyst Ratings General Best of Benzinga


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