Dan Loeb Would Have Been Better Off Buying Index Funds Than Yahoo

Hedge Fund News: Dan Loeb, Phil Falcone, CitigroupBloomberg reports that Dan Loeb made $122 million from his $971 million bet on Yahoo (YHOO). It may sound like a lot of money but this is a return of only 12.6% since September. If he had invested $971 million in S&P 500 ETF (SPY) on September 30th, he would have made $192 million (19.8% return). Dan Loeb’s activist stake in Yahoo costed him $70 million so far.