Third Point, the activist hedge fund founded by Dan Loeb, says democracy has been “meaningfully disrupted this year” by the US presidential election.
With less than a week to go until election day, the hedge fund firm said that the season has been particularly difficult.
Here’s the full excerpt from the firm’s third quarterly letter sent Tuesday (emphasis added):
“Our democracy has also been meaningfully disrupted this year. Social media, primary processes built for the pre-internet era, and illegal foreign cyber-attacks have changed the trajectory of our political system. We try to analyse all of these political and economic events in a dispassionate manner, separating our feelings from what we think the impact will be on the economy, markets, and certain industries. Maintaining such emotional distance has been particularly difficult during the most disappointing and bizarre election in our country’s history. While many important issues affect the next president, from the appointment of a Supreme Court Justice to policies on education, healthcare, immigration, and the environment, we are focused on a few basic questions: What can we expect for economic growth in the coming years and do we face a recession? What is the prospect for monetary policy and where can we see long and short term rates? What impact will rates, productivity changes, and earnings expectations have on multiples?”
Third Point’s flagship fund returned 7.2% for the year through September 30.
ValueWalk first reported on the letter.