New York Times: Hedge Fund Manager Daniel Loeb Takes Swipe at President ObamaJuly 25, 2011 0 Comments
Daniel S. Loeb, the founder of Third Point, isn’t shy about speaking his mind.
So it should come as little surprise that the hedge fund’s latest letter to investors, about the economic state of the world, comes out swinging.
“The budget is not the only thing in deficit today, as a paucity of leadership has left the country without a stable framework in which businesses can conduct business, investors can invest and consumers can consume without a high degree of uncertainty and fear,” the letter begins.
While Mr. Loeb concluded last year by saying he would no longer be writing Third Point’s quarterly investor letters, his apparent dissatisfaction with President Obama has roused him to once again pick up his pen for another blunt and acerbic piece.
From the letter:
“It is increasingly difficult to avoid the conclusion that while Washington burns, President Obama is fiddling away by insisting that the only solution to the nation’s problems — whether unemployment, the debt ceiling or deficit reductions — lies in redistribution of wealth. Perhaps a plan that led the way forward by expanding opportunities rather than redistributing outcomes and emphasized growth and prosperity for all would be met with less political resistance.”
Third Point, which manages about $7.9 billion in assets, found little to be more hopeful about Europe. The hedge fund sees a slowdown there, as the Continent is beset with sovereign debt worries. The letter, sent to investors in the firm’s offshore fund, notes that the investing landscape has been schizophrenic as market participants veer between fear of being taken out in the decline and concern about missing out on an opportunity.
Given the problems in the United States and the uncertainty surrounding Europe, Third Point is “inclined to be cautious with your capital,” the letter said. The firm has reduced net exposures to the market as a result.
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