Dan Loeb Says He Was Too Cautious During October Rally

Dan Loeb is the founder and manager at Third Point. He is well known for big and successful investments.

Dan Loeb Too Cautious on October Rally

The thing is Dan Loeb is such a successful hedge fund manager because his eye is on hedging his fund’s risk. So, while October was a great month for stocks, Loeb’s Third Point didn’t get to reap much of that benefit. “We only gradually increased our exposures near the market bottom and thus underperformed during the dramatic rise in October,” said Loeb in a letter to investors. “While we have not generated significant gains this year, we have protected capital and exhibited materially lower volatility than the markets.”

Dan Loeb THIRD POINT

Hedge Fund Perfomance in October

The October rally was the first opportunity for solid upside after what was “one of the worst three-month periods in the $2 trillion hedge fund industry’s history,” reports Reuters. Several big hedge fund managers, like John Paulson and Lee Ainslie “saw fund returns plunge into double-digit losses during the third quarter.”┬áDan Loeb’s Third Point was no exception. “Loeb’s flagship Third Point Ultra fund declined 6 percent in the third quarter, but less than the broader stock market, which dropped 9.5 percent.”

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!