Activist Dan Loeb is Sweet on Nestle

In a letter released to investors last month, Dan Loeb’s hedge fund Third Point announced that it owns approximately 40 million shares in Switzerland-based Nestle SA, according to a recentBloomberg article, referring to the $3.5 billion stake as “the biggest bet of his two-decade career as an activist investor.” According to the article, the move is the latest in a recent push by Loeb into Europe due to “an improved economic outlook and declining political risks in the region.” His stake in Nestle, it says, “ratchets up pressure on the European consumer goods industry”—citing the failed effort earlier this year […]

Has Trump Resurrected Active Management?

Hedge fund manager Dan Loeb believes the current environment is “undoubtedly better for active investing—just as active investing was considered to be on its deathbed,” according to an article on last week’s Third Point’s Loeb argues that higher rates will create opportunities for active managers, “reversing the one-way trade in yields that dampened the past few years.” He cites Trump’s promises to cut taxes and regulations as potential causes for the shift. The article states, “other market strategists have also said that 2017 is the year stock picking, or active money management, can increase investment returns after suffering amid […]

Loeb Warns of Hedge Fund “Washout”

Dan Loeb, founder Third Point, draws two conclusions about the hedge fund industry and the markets in his recent shareholder letter, according to this recent Bloomberg piece. The first is Loeb believes the hedge fund industry is in the early stages of what he calls a “washout” after the group’s poor returns over the last few years. Loeb says the recent run for many funds is one of the most “catastrophic periods” he has ever seen for hedge fund managers. What’s more, he thinks the complexities of markets over the past few months is a trend that is likely to […]