Nov
02
Loeb’s Third Point Capital Boasts ‘More Single Short Names Than Long Positions’
By
A long list of stock market woes.
Dan Loeb has no shortage of macroeconomic worries.
Photographer: Simon Dawson/Bloomberg
Third Point is growing disenchanted with the outlook for the broader equity market.
The hedge fund, run by activist investor Daniel Loeb, chronicled the sources of stocks’ third-quarter woes in its latest letter to investors. The (long) list included the following:
- Worries about Chinese growth
- A deterioration in the U.S. economic outlook. “Janet Yellen may have inadvertently checked herself and the Fed into the Hotel California,” the letter reads. “It is increasingly difficult to see how the Fed can justify raising rates in 2015, particularly considering recent employment weakness in the U.S. (an unwelcome surprise) and similar softness in manufacturing figures.”
- A looming choice between “inexperienced, unserious” GOP candidates and “economically unfriendly Democrats” in 2016
- Continued unrest in the Middle East
- The disappearance of the perceived central bank “put”
This toxic cocktail was to blame for the Standard & Poor’s 500-stock index’s third-quarter losses, according to the fund. Third Point believes that volatility is here to stay and that the scope for multiple expansion may be limited…
Loeb’s Third Point Capital Boasts ‘More Single Short Names Than Long Positions’
