Mon, Apr 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Daniel Loeb took a swipe at Obama as his hedge funds slip

Tuesday, July 26, 2011

Daniel Loeb
Opalesque Industry Update – Hedge fund manager Daniel Loeb, founder of the $7.1bn Third Point LLC, has criticized U.S. President Barack Obama, accusing him of “fiddling away” time and “stirring up class warfare,” over his alleged obsession in the “redistribution of wealth.”

Ironically, the scathing remarks were a complete turn around coming from the man who is a registered Democrat and who heavily supported Obama in his 2008 presidential bid. Now Loeb’s statement is seen by many as support of the Republican party.

In his letter to investors, Loeb said: “It is increasingly difficult to avoid the conclusion that while Washington burns, President Obama is fiddling away by insisting that the only solution to the nation’s problems — whether unemployment, the debt ceiling or deficit reductions — lies in redistribution of wealth. Perhaps a plan that led the way forward by expanding opportunities rather than redistributing outcomes and emphasized growth and prosperity for all would be met with less political resistance.”

In another report, Loeb condemns what he termed as the “absence of leadership” in Washington that is creating a horrible business environment. He cited the budget deficit as well as the lack of concrete framework on how “businesses can conduct business, investors can invest, and consumers can consume without a high degree of uncertainty and fear.”

He addressed Obama: “It's increasingly difficult to avoid that conclusion that while Washington burns, President Obama is fiddling away by insisting that the only solution to the nation's problems -- whether unemployment, the debt ceiling or deficit reductions -- lies in redistribution of wealth.

“Perhaps the difference between President Obama and many Americans is that the President sees prosperity as a sign of "unfairness" that needs to be corrected by government via higher taxes and increased regulation. Perhaps a plan that led the way forward by expanding opportunities rather than redistributing incomes and emphasizing growth and prosperity for all would be met with less political resistance.”

Loeb has a reason to be angry. His company has been slipping over the past few months and has hinted it is taking a more bearish stance moving forward.

His two key hedge funds, Third Point Partners LP and Third Point Ultra Ltd, declined -2.5% and -2.6%, respectively, in the last three months, fortunately, the two funds were up 6.3% and 8.9% year to date halfway through 2011.
Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably