Dan Loeb Has Mildly Complimentary Things To Say About Company’s Management Team

Savor this moment, Dow Chemical. Treasure it. Never let it go.

Hedge-fund manager Dan Loeb has a message this May Day: Ignore the old market adage “sell in May and go away.” In a letter to investors in his $14.3 billion fund, Third Point LLC, Mr. Loeb admits to being a bit too optimistic to start the year and says that hindsight shows “certain sectors were clearly exhibiting bubblelicious valuations.” But he believes the pullback in stocks created the chance to add to positions at “attractive levels.” That means it’s time for the traders to come out…

A big section of the letter is spent on his investment in Dow Chemical, which Mr. Loeb had suggested be broken up earlier this year. This time around, Mr. Loeb makes no references to a break up and is much more complimentary of the company. “Management’s level of shareholder engagement has also risen notably, demonstrating an admirable and strong commitment to addressing long‐standing concerns,” he writes. Still, not everything is resolved, and Mr. Loeb continues to have concerns about Dow’s petrochemicals unit performance. He says the company is “under-earning” by at least $2.5 billion.

Dan Loeb’s Advice for 2014 Investing: Pick Carefully and Be Patient [MoneyBeat]

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3 Responses to “Dan Loeb Has Mildly Complimentary Things To Say About Company’s Management Team”

  1. guest says:

    is he feeling alright?
    -concerned guest

  2. Guest says:

    He also made the same "bubblicious valuation" comment when asked about Jennifer Lopez in 1997.

  3. Mexi_Cant says:

    Sounds like solid dating advice.