Bob Chapman: He hit a kid with his car, sure, and it's true I said his behavior can be 'extraordinarily odd,' but that doesn't mean he's not a masterful steward of capital any one of you would be lucky to have manage your money.
Just last week Loeb surprised investors by saying he would give back about $1.4 billion this year — this after saying he wanted to grow the fund to $40 billion. Rivals believe the move was timed to pre-empt the blowback from an exposé of Loeb in the just-released issue of Vanity Fair. The article immediately became the talk of Wall Street...Many of the article’s tales — like the poison pen letters Loeb writes to corporate boards — aren’t new. But Loeb has been trying to clean up his image in recent years to attract a new crop of institutional investors. “Pensions do not like this stuff and a lot of people had forgotten about these bad qualities of Dan,” said someone who has known Loeb for years. The airing of Loeb’s dirty linen could also harm his activist investing. “Who’s going to let him on a board of directors?” asked one activist. “There’s no way that Sony or Sotheby’s will let someone like this on their board.” But even his detractors acknowledge Loeb has an uncanny ability to make money. “Why would a rational investor withdraw money from Third Point, which arguably is one of the best hedge funds of our time?” asks Robert Chapman of Chapman Capital. “Tell me, who has a better long-term track record than Loeb?”