Bill Ackman, head of the best performing large hedge fund firm, is poised to pull in at least $1 billion, according to rough CNBC calculations using his net worth, stake in $19 billion Pershing Square Capital Management and the fund’s stellar 35 percent return net of fees through early December. Larry Robbins also pulled in about $600 million so far this year, according to a similar estimate. His Glenview Capital Management has surged again, gaining 12 percent in its main fund and 21 percent in a concentrated version through November, according to performance information obtained by CNBC. Glenview managed $9.9 billion as of Sept. 30. And Dan Loeb, whose main hedge fund is up 7.1 percent through November, appears set to make about $230 million this year. Third Point manages $16.5 billion. [NetNet]
And by everybody, we of course mean the great hedge-fund art collectors, the answer is Miami. First, because it’s a lot less shitty, weather-wise, down there than it is in the greater Greenwich metropolitan area, and second, because it’s Art Basel’s winter sojourn from its namesake city, which is also very, very cold right now. Read more »
As many of you know, Dan Loeb is something of a pioneer in the activist investing industry. Sure, there were others doing it before him, but he made a name for himself when it came to the art of disemboweling his targets via pen and paper. And while he continues to send various public company CEOs and their boards his trademark letters (all of which include a potent, poetic blend of sarcasm, self-regard, belittling attacks on management competence, and lengthy prescriptions for change), Loeb is not content to sit on his laurels vis-à-vis fucking up the universes of his objects of scorn, or to get left behind in the 20th century of activist investing. In April 2012, he debuted a blog exclusively devoted to his proxy battle against Yahoo– the first of its kind!– and today, he’s unveiled his latest reinvention of the wheel: a short film about Dow Chemical, complete with ominous music that is sure to haunt your dreams and make the Koch brothers proud. The film is a certain finalist for best picture at the Proxies, an annual awards ceremony honoring cinematic achievement in the hedge fund industry. Read more »
How much does it cost to keep your CEO when Dan Loeb decides he’s a feckless, free-spending moron who doesn’t know the first thing about the kind of art that people like Dan Loeb like to buy? For Sotheby’s, the tab is now as follows: three board seats, putting up with Dan Loeb’s occasional presence and the odd phone call—obnoxious, to be sure, and perhaps something you wouldn’t have subjected yourself to freely, but all the same. Oh yea, and $20.1 million, a.k.a. all of the money you’ve brought in for four-and-a-half months. Read more »
Area CEO Loves Listening To Dan Loeb Tell Him How Much He Sucks, Can’t Wait For More Where That Came FromBy Bess Levin
Dow Chemical’s management team are “going to be great listeners” to ideas from shareholders on improving the company’s performance, its chief executive Andrew Liveris has promised. Speaking as the company reported better than expected earnings for the third quarter, Mr Liveris said on Wednesday that he had been continuing to speak with Dan Loeb of Third Point Capital and other shareholders about how to raise Dow’s share price…Third Point, an activist hedge fund, in January revealed it had taken a stake in Dow and called for the group to be broken up, saying it “woefully underperformed” over the past decade…On Wednesday Mr Liveris denied that he had an “adversarial” relationship with Mr Loeb or other investors, and promised to listen to their analysis, but said he sometimes had to point out to them where they were wrong. [FT]
Attention Public Company CEOs: Dan Loeb Just Raised $2.5 Billion To Spend On Pens, Paper, Ruining Your LifeBy Bess Levin
As those of you familiar with the career of Daniel S. Loeb know, the hedge fund manager makes a nice chunk of change each year through activist investing. While the boards of most public companies view activist investors in general as people who show up to their home uninvited, take a shit on their staircase and then demand to know how anyone in good conscience could live in such squalor, to view Loeb as just one of many would be like lumping Pavarotti together with a bunch of glee club dropouts.
The man, quite simply, has elevated the art of activist investing, through his trademark letters (all of which include a potent, poetic blend of sarcasm, self-regard, belittling attacks on management competence, and lengthy prescriptions for change) and delightful flourishes like tasking his best researchers with uncovering damning details about the objects of his wrath, like, for instance, that they lied about their college majors. Anyone who has watched him at work will agree: he is an artist.
And now, he’s got even more money than usual to spend on fieldwork, correspondence, and possibly skywriters who will be paid to leave a fluffy white “Just Quit Already” above various chief executives’ homes and offices. Read more »
Remember, back in October, when Dan Loeb announced that Third Point would be returning about 10% of the $14 billion it had, to “moderate” its growth or something? Well, that may have moderated things a little too much, and even though Third Point’s fat 6% return has it managing $15 billion seven months later after cutting those checks, Loeb is feeling inspired to write a few more letters, and needs a few more bucks to do so. Read more »
Argentina has nine days to pay Paul Singer—or does it? Sure, a second default in 13 years will probably keep the country from tapping the international debt markets until President Cristina Kirchner’s son Máximo follows father and mother into the Casa Rosada in nine to 13 years or so. But who needs to make good on one’s commitments when one can just loudly proclaim that one has done so without actually doing so and then call on Xi Jinping and Vladimir Putin for a bailout? Read more »