In a year that is making fools of all high profile money managers, I find no reason to believe why this latest call out of Dan Loeb won’t come back to throw eggs all over his face.
“The environment for short selling is also attractive and we have more single short names than long positions in our book today,” Loeb wrote in the letter dated Oct. 30.
“We have reduced our net exposure by nearly a third through sales and new shorts over the past few months while maintaining significant positions in our highest conviction, event-rich names,” he wrote, without identifying the new positions.
He said that the fund’s biggest winners for the third quarter included Kraft Heinz and eBay, plus an unnamed position called “short A.” The biggest losers during the quarter include SunEdison, Dow Chemical Co., Amgen Inc. and Yum! Brands.
Einhorn, Icahn and Ackman have been marginalized this year, without question. Dan Loeb’s Third Point had a solid October, up 4.7%, following a horrific summer where his fund lost 8.9%. Let’s see if his latest call to be net short stocks, heading into the final two months of the year, pays off.
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Given this market fuckery, I am surprised these managers just don’t STFU.
Something tells me his “unnamed” short position is VRX; no love loss between Loeb and Ackman.
this citron andrew seems like a pleasant gent
I am told that the richest market players often talk the opposite of their book, in order to try to get muppets to take the other (losing) side of their trades.
Interesting wording “we have more single short names than long positions in our book today,” Could possibly mean he has a lot of small short positions and a few gigantic long positions. Or not. It’s a fairly unclear statement.
Late to add a comment here, sorry about that. One well followed financial forecaster (Charlatan is more fitting) forecast a huge financial crash on 1 Oct 2015 (or using his methodology, 2015.75) for quite a few years. Martin Armstrong. Worth a mention?
Granted, he’s been wrong so many times that it’s amazing anyone listens to him. The ZeroCred crowd probably needs more of a reminder of how wrong Marty ‘mini-Madoff’ Armstrong was on this call, but I’m sure at least a few readers here still believe in the con artist