Thu, Apr 2, 2015
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   |   
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Opalesque Roundtable: Emerging managers should avoid chasing 'institutional unicorns'[more]

    Bailey McCann, Opalesque New York: For managers looking to raise a new fund after the crisis, marketing efforts will need to be significantly different, according to delegates at the recent Opalesque Texas Roundtable. "Most of the smaller managers come to the whole fund-raising and marketing

  3. Cohen's private investments deliver strong 7.5% gain in Q1[more]

    From Reuters.com: Billionaire Steven A. Cohen's investments gained 7.5 percent in the first three months of 2015, according to a person familiar with the numbers, helping the former hedge fund manager extend his string of market-beating returns. Cohen's Point72 Asset Management, which invests

  4. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

  5. Opalesque Exclusive: Cyber security and hedge funds: increased awareness, Part One[more]

    Benedicte Gravrand, Opalesque Geneva: If you look at the recent cybersecurity news from Bloomberg, hackers are frightening the people: they steal photos and threaten to expose them, they can break into ATMs, they ha

 

banner