Like you, Dan Loeb’s been hearing a lot of things about activists such as himself from the likes of Larry Fink, Moody’s, some old guys and some woman who he once might have voted to make president but now definitely would not. Frankly, he’s a little fed up with it. But—uncharacteristically—he’s held his tongue for quite some time, allowing his more pugilistic elders to bear the brunt of the defense. Well, Dan Loeb can keep his poison pen in sheath no longer.
"Lately, a varied chorus of powerful union bosses, politicians and candidates, an asset management company executive, and a few ivory tower types, have asserted that activism is short-term in nature," Loeb wrote. These same individuals think of activists as "'hit and run' investors who only care about making a quick buck while leaving a company and its employees in ruins," Loeb said. "It might surprise people to hear that we agree completely that the sort of activism they describe is abominable," Loeb added. "Luckily, it does not really exist, and certainly not at Third Point." The fund's securing of "visionary leaders" like Yahoo's Marissa Mayer, John Higgins at Ligand, and Sotheby's Tad Smith was one indication of that, he wrote.
Anyway, now that he’s gotten that off his chest, here are a few companies he might or might not be hitting and not running over the next few years.
Elsewhere in the letter, Loeb talked up the pharmaceutical company Allergan (where Third Point began investing in 2013, when it was still known as Actavis), and voiced support for the pending sale of its generics unit to Teva Pharmaceutical. He described the deal as a financial "home run" and its strategic benefits "equally impressive."
Loeb also revealed a position in the beleaguered Suzuki Motor Company, which he described as "undervalued."