A few years ago, Chris Kyle, the decorated sniper, taught the Third Point founder how to shoot. The two unlikely buddies met through Loeb’s fellow hedge fund manager, Kyle Bass, where Chris Kyle served as houseguest and shooting instructor, because all hedge fund managers should have live-in shooting instructors. In any event, Loeb took a shine to young Kyle, especially after reading his book, American Sniper. Loeb thought it would make a great movie, and so it has, at least according to the Academy of Motion Picture Arts and Sciences and the moviegoers who have spent $250 million to see it over the past month.
Dan Loeb could have had a piece of that impressive action: For introducing Kyle to a high-school buddy who produced the movie, Loeb had a chance to invest $250,000 in it. He chose to invest a more modest sum in Kyle’s tactical-training company—which has not produced quite the same returns.
Loeb declined an early offer to put $250,000 into “American Sniper,” said a person who asked not to be named because the matter was private. The founder of New York-based Third Point LLC did invest in Craft International LLC, Kyle’s security-training business. That company filed for bankruptcy-court protection last year, leaving Loeb little to show for his $25,000.
“Even though we lost our cash investment in Craft, we got paid back multiple times over by having the privilege to know Chris and helping out an American hero,” Loeb said in a statement.