Third Point

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]

  • 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]

  • 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 []

A Kinder, Gentler Dan Loeb?

According to a feature next month in Men’s Vogue , Dan Loeb is toning down his act. Page Six describes it as “keeping his trap shut.”

His newly launched silent act “speaks volumes about Loeb’s commitments to rehabbing his reputation… If a hedge fund manager with as many sharp edges as Loeb is trying to soften his image, could the era of the hedge fund cowboy be over?”

We’ll believe it when we see it. (And if we see it, frankly, we’ll be disappointed.)
Hedge Fund King Pipes Down [NY Post]

Get Your Head Out of Your Aperture

DealBooker Andrew Sorkin points us toward the latest letter from Daniel Loeb, who runs the Third Point hedge fund, to directors of Nabi Biopharmaceuticals. DealBook reprints some funny-mean quotes from Loeb’s letter but readers who don’t click through to the letter itself will miss some of the best lines.

Despite this, you hide your heads in the nearest warm aperture in an apparent “ostrich defense” and ignore your shareholders (the top three now owning over 28% of your shares in aggregate) in the hope that the Company’s owners will go away before your next annual meeting.

Presumably it violates the rules of proper etiquette at the Times to mention warm apertures, so we won’t hold this lapse against Andrew.

Loeb Pulls Out Poison Pen Again

Loeb’s Letter
More Classic Loeb Letters
[Infectious Greed]