Dan Loeb

Third Point LLC, the $5.7 billion hedge fund run by acid penned yoga enthusiast Dan Loeb, is getting into the Yahoo acquisition trade, Reuter’s great Dane Hamilton is reporting. The fund has accumulated a stake of over 5 million shares, and may build a 10 million share stake. At the end of March, Third Point held only 1 million shares.
Texas oil legend T. Boone Pickens revealed this morning that he owns 10 million Yahoo, and plans to vote them in support of Carl Icahn. Paulson & Co, another large hedge fund that is bursting with funds after making a killing last year shorting subprime, disclosed last week that it holds 50 million shares and is supporting the Icahn move. Capital Research owns 85 million shares and Legg-Mason owns 83 million. Both are thought to favor a deal to sell Yahoo to Microsoft.
Third Point backs Icahn in Yahoo fight [Yahoo]

  • 15 May 2007 at 12:55 PM
  • Dan Loeb

Will The Poetry of Dan Loeb Continue?

danielloeb.jpgThe only man in recent history who was able to get a rise out of Third Point’s Dan Loeb is branching out on his own. Andrew Rechtschaffen, whose move from Greenlight Capital to Citadel 18 months ago prompted the usually mild-mannered Daniel Loeb to send an email to Ken Griffin in which he referred to Citadel as a “gulag” and its employees as “indentured servants” and threaten: “should you attempt to hire people from [my friends], I will consider it a similar act of war” is forming Obrem Capital. The fund will use a long/short equity strategy. Rechtschaffen, Financial Times notes, worked in Citadel’s principal strategies group, where they use an event-driven approach and invest in companies involved in takeovers or restructuring. But who cares about that? What we want to know is:

What does the love note that (you know) Loeb is in the midst of drafting to young Rechtschaffen say?

A. “I just wanted to write to tell you that your fund is a pogrom—NO—a concentration camp. Your employees aren’t like slaves in Egypt, they ARE slaves in Egypt. Which is funny because I have no doubt you’re working up some sort of pyramid scheme over there as we speak. If you so much as come within a 100 mile radius of my staff, I will hunt you down and strangle you with my necktie, which will, conveniently, not be wrapped around my neck, but on my head, because, as I said in that Men’s Vogue article from a few months back, “I am like Rambo in the office”.”
B. “If I were you I’d run under the bed and hide. I look forward to the inevitable meltdown of your fund.”
C. “Andrew…I am going to find you. If not in your office than in the Xerox room or the little conference room near the kitchen…If not in your apartment than in the laundry room or the ATM in the building across the street or the watch shop. I’m going to find you, Andrew.”
D. “Lunch, Friday, you name the time/place. (Please say Cosi, please say Cosi).”
E. Ladies choice
Earlier on DealBreaker: Daniel Loeb & Rambo: First Blood Brothers?
‘Act of war’ manager leaves Citadel [Financial Times]

  • 12 Apr 2007 at 3:11 PM
  • Dan Loeb

The Poetry of Dan Loeb: A Study In Language

danloeb.jpgThird Point founder Dan Loeb has often been noted for his “poison pen” or “venomous tongue.” But focusing on the toxic properties of his letters to corporate executives and boards—and we’re not saying they aren’t enjoyably poisonous—risks missing their truly poetic value.
Loeb specializes in rhythmic alliteration and internal “sound rhymes.” In his recent letter to letter to the board of PDL Biopharma he writes, “Unfortunately, our initial optimism that we could work constructively with management quickly faded through a series of subsequent telephone calls with Mr. McDade, culminating in a “slap-in-the face” on Friday, April 6th, in which it became abundantly clear that Mr. McDade has no intention of pursuing a constructive dialogue.”
The starting gambit of repeated O sounds—unfortunately, our, optimism—gives way to a back and forth between consonant sounds. We, work, with plays off could, constructively, quickly. Then the W is exchanged for the S in its back-and-forth with C: series, subsequent, slap, calls, culminating. The word Face plays a special role, bringing together the alphabetical C and the audible S. Loeb drops away from the pattern until he returns to “constructive” which incorporates all the sounds he played with earlier—O, S, C—with the notable exception of W—the sound that was used for the togetherness words we, work, with. The message of the language: we’re not working with you anymore.
More on the Loeb Letter:A Kinder, Gentler Third Point? Don’t Count on It [DealBook]
Hedge fund activism – the Third Point way [FT Alphaville]
Loeb’s Letter to PDL BioPharma Inc. [PR Newsire]

  • 03 Apr 2007 at 11:15 AM
  • Citadel

Dan Loeb: Ken Griffin Is A Gerbil

ken_griffin.03.jpgFortune’s big “unauthorized” profile of Citadel boss Ken Griffin in now online and it delivers exactly the kind of slimy dirt you were hoping for. There’s the vague intimations that Amaranth’s collapse was something of an inside job. There’s the sentence which stops short of calling Anne Griffin a “trophy wife” but just barely (“He’s got the trophy home, obviously, and is married to a very attractive woman, the former Anne Dias.”)
Most of all, however, there’s the assessment leveled by Third Point’s Dan Loeb, who “apparently refers to Griffin as a ‘gerbil,” according to Fortune writer Marcia Vickers.
Vickers goes on to reveal an email Loeb sent to Griffin:

In 2005, after Griffin snagged an analyst from another shop, Loeb sent an e-mail to Griffin: “I find the disconnect between your self-proclaimed ‘good to great, Jim Collins-esque’ organization and the reality of the gulag you created quite laughable. You are surrounded by sycophants, but even you must know that the people who work for you despise and resent you. I assume you know this because I have read the employment agreements that you make people sign.” Citadel declined comment, as did Loeb.

Sure, Loeb wouldn’t comment. Sure.
A hedge fund superstar [Fortune on CNNMoney.com]

  • 11 Jan 2007 at 4:13 PM
  • Dan Loeb

Daniel Loeb & Rambo: First Blood Brothers?

danielloeb.jpgWant to find out more about hedge fund manager Daniel Loeb (founder and chief exec. Of Third Point LLC, worth $3.6 billion), but are too embarrassed to be seen buying Men’s Vogue? As we are wont to do, us DealBreakers have anticipated your needs and done the dirty work for you. [NB: One might note that you’re not alone in your bashfulness—John, too, was also heard saying “Be seen purchasing MV in public? Why don’t I just ask for Cosmo or a Teen Vogue? While I’m at it, how about I put on a dress and refer to myself as Joan?” Needless to say, my gentle suggestion that he was more of a ‘Jessica’ was not appreciated; “you have four minutes to get the magazine and have a Jameson on my desk; you’d be best to make haste,” Jessica Joan John hissed. I was back in three, natch]. In addition to sparing you the humiliation of purchasing MV, we’ve also read it for you (though failed to put it “in the pictures,” because while you may or may not be lazy, we choose to believe you can in fact read), and highlighted the essential parts; in their entirety, plus our own notes, after the jump (surfing, man-boy love, downward dog and more!).
+If you’re ever at an event with Daniel Loeb, it would not be uncommon to hear something along these lines, before the end of the evening: “Everybody calm down. Nobody make any sudden movements. We’re all going to get out of here alive.”

…his antics—one of a series of recent incidents in which he has turned his patented vitriol on his own colleagues—suggest his activist investing many not be just a calculated strategy. “When Dan walks into a room, he makes everybody nervous…he will sit quietly for a while and then suddenly have an outburst.”

Read more »

  • 11 Jan 2007 at 1:59 PM
  • Dan Loeb

The Poetry of Dan Loeb

danloeb.jpgSelf-styled “Greensboro Billionaire” Percy Walker hasn’t quite got his hands on the latest issue of Men’s Vogue— he’s too embarrassed to buy a women’s magazine—but the mere fact of the appearance of a story about Third Point founder Dan Loeb has inspired his fevered imaginations to dream up IM conversation’s with the famous fund manager, and to cite several examples of Loeb’s shareholder letter poetry. This one would be absolute perfection if it was just a bit tighter, and perhaps in haiku form:
There is little I enjoy as much
as watching you from afar
as your reputation and
‘organization’ declines
as the same rate
as your falling returns.
Also, we’re not too embarrassed to buy a women’s magazine. Coming soon: Bess Levin reads Men’s Vogue’s Dan Loeb article!
Daniel Loeb Writes Percy [PercyWalker.com]