SALT Conference: Dan Loeb Sees Activism As A Positive Impact On The World

Dan Loeb sat down for a one-on-one with Anthony Scaramucci on Wednesday at the 2015 SALT Conference in Las Vegas.

The conversation was different from some of the more charged sessions earlier in the day, as the two chatted like old friends. Perhaps that’s because Skybridge has over $1 billion invested in Third Point, or maybe because Loeb believes in investing for positive change and in his words, “using power to help the powerless.”

Loeb has two basic rules to adhere to:

• "Don’t fight the fed."
• "Don’t fight the godfather. That’s David Tepper. So I think interest rates are likely to be higher next year.”

Activism

“What is your view of activism today?” Scaramucci asked. Activism has changed a lot in the shift.

“The targets are much bigger. Instead of forcing specific change to a company, as investors, we might see something that the board may not have seen based on historical governance,” Loeb said.

“Activism itself,” Loeb said, “is about having the power to help the powerless.” He was tackling issues larger than just the balance sheet. He’s looking to reform criminal justice, education, LGBT and marriage issues.

“It’s not good to be the incarceration capital of the world.”

Related Link: Exclusive: Peter Schiff At SALT 2015: What's Wrong With The Fed's Forecasts?

Split Yum In China?

As it relates to Yum! Brands, Inc. YUM, Loeb said, “Two main things have happened. We saw an opportunity that really hit the skids because of a food scare in China. Yum can be thought of as two businesses, China and the U.S. After the issues in China declined, the value was underappreciated.”

The second thing is that, “they have on going opportunities to continue decreasing costs in the United States."

Advice To Younger Americans

Wrapping up the short session, Scaramucci asked, “what is your advice for young Americans?”

“Engage and form your own set of values that can be your guiding light,” Loeb responded. The world is much different than it was two years ago, “now we have Uber.”

“Do well in school, learn basic skills and learn to code... We need to go back to the roots, making sure we have more kids that can make those choices.”