Daniel Loeb & Rambo: First Blood Brothers?

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Want 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,” JessicaJoan 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.”


+Daniel Loeb is the Colin Quinn* of the hedge fund industry.

Witty in comparison with the mind-numbing style of most securities filings, Loeb’s bons mots have attracted a cult following amongst analysts and money managers, who forward them like off-color jokes and post them on investing blogs.

+Daniel Loeb likes to look in the mirror and say to himself “All I need are some tasty waves, a cool buzz, and I'm fine.”

An avid surfer, he named his fund after the choicest break at Malibu’s Surf-rider Beach

+Man-boy love is a time-honored tradition in Greece, according to Daniel Loeb.

In 1999, he was sued for libel by public relations executive John Liviakis for allegedly “repeatedly and maliciously publish[ing]” anonymous posting on Yahoo! Finance under the pseudonyms “John_Crimiakis_StockSwindler” and “Mr. Pink” (after a character in Reservoir Dogs). Liviakis’s complaint quoted one posting: “I have registered 1.7 million shares to sell and these will soon flood the market. Hopefully I will sell these before the company loses its Nasdaq listing…Then I will laugh at you fools for buying my shares and I will celebrate with a bottle of grappa, some fresh feta, and a nice young boy—just like in the old country.

+Daniel Loeb is not not a bully.

”Dan refers to it as ‘social pressure,’ ” says a former Third point employee. “He believes that if you embarrass a CEO in front of his friends at the club, make him feel like people are talking about him, you can exert change on his company.”

+There is no evidence that Daniel Loeb may be overcompensating for something.

Last fall he reportedly agreed to purchase the most expensive apartment ever sold in New York, a $45 million penthouse in a building now under construction on the site of the old Mayflower Hotel.

+Daniel Loeb has issues with the fact that he’s nouveau riche.

He also owns…a burgeoning art collection with works by such artists as Andy Warhol, Cindy Sherman, and Martin Kippenberger. But, like other hedge funds managers, he’s more parvenu than patron of the arts. After New York gallery owner Barbara Gladstone reportedly cancelled the sale of a Matthew Barney photograph to Loeb, he was irate. “Dan doesn’t understand that just because you have the money doesn’t mean you will get what you want,” says a prominent art consultant. “It’s not a world you can buy into so easily.”

+Daniel Loeb is a big fan of downward dog.

His extracurricular life was on display in a 2001 New York article about yoga, which included a character referred to only as “Mr. Hedge Fund.” I was told that it was actually Loeb, hidden behind an alias. A longtime devotee of Ashtanga yoga, Leob practices every morning at 5:30 and often travels to Mysore, India, in search of higher learning.

+Daniel Loeb can often be found shirtless, with his tie around his head during office hours.

”I’m like Rambo in the office.”

+Sounds like Loeb is stalin’ for time.

Loeb sent [Citadel Investment Group’s Kenneth] Griffin an abusive e-mail in which he referred to Citadel as a “gulag” and its employees as “indentured servants….should you attempt to hire people from [my friends], I will consider it a similar act of war.”

*Is Colin Quinn funny? No, not really. But how funny do you think the person who was dubbed “witty in comparison with the mind-numbing style of most securities filings could possibly be? Come to think of it, this comparison may actually be unfair to Quinn.

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