It’s been a good quarter for Dan Loeb.
Loeb’s Third Point now has $6.7 billion AUM, up from $4.8 billion in the past year, according to AR Magazine.
And the fund just gained 8.6% in the past quarter.
There are a couple of reasons why people might be pouring in.
1 – February was the biggest month ever for hedge fund inflows, so many hedge fund’s assets are going up.
2 – Investors in Loeb’s fund might agree with his feeling that corporate transactions (one of the “activities” an activist fund like Loeb’s bets on) will be huge this year. (Fellow manager Ray Dalio agrees)
Here’s the relevant part of his investor letter (the rest is embedded below).
The full investor letter: