Dan Loeb's Third Point Returns 10% Of Capital Amid "Concerns About The Global Economy"

Tyler Durden's picture


It seemed as if this morning's exuberant run into US equities would never stop but it would appear that comments from none other than Dan Loeb has (for now) put an end to the exuberance. With fundamentals collapsing, and even Cramer's "Cult stocks" tumbling, today's rally was yet another blindlingly obvious insight into the fact that this market is entirely artificial and Third Point's Dan Loeb, worried about the global economy, has reduced his exposure to equities. Furthermore, he plans to return 10% of capital to investors. Not exactly the wealth-effect enhancing, confidence-inspiring action that the Fed hoped for...

Even the cult stocks are rolling over...


Via Third Point:

On US Equities:

These sales decreased long equity exposure, a move consistent with our growing concerns at the time about the global economy...

Year-End Return of Investor Capital

Third Point’s assets under management are currently $14 billion. Our increased size is primarily a result of a net annualized return since January 1, 2009 of 24% to investors in the flagship Partners fund and 29% in our slightly levered Ultra fund, which have led growth in the capital base since our initial close to new inflows in mid-2011. In an effort to moderate this growth, we have decided to give back a portion of 2013’s cumulative profits to investors.


We plan to return approximately 10% of capital in our private funds. This amount will be based on year-end account balances and will include any requested redemptions from investors, the deadline for which is October 31st. The capital return will be made to all applicable investors on a pro rata basis, but will exclude employee investments and the investment from our listed vehicle feeder fund (which will separately pay a redemption-funded dividend).


It seems increasingly the biggest (and smartest) players in the room are sensing the music is beginning to stop... Soros, Oaktree, and Klarman's Baupost among many others...

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Tue, 10/22/2013 - 11:34 | 4079575 Cult_of_Reason
Cult_of_Reason's picture

Are you saying CNBC has been lying and the global economy is not recovering?



“In calendar year 2003 we were the highest performing stock on Nasdaq,” Mr. Reed wrote in a quarterly letter to investors. “We had solid results compounded by momentum-investor-fueled euphoria.”

“Some of the euphoria today feels like 2003.”


Tue, 10/22/2013 - 11:39 | 4079594 BaBaBouy
BaBaBouy's picture

Here Is Your PAPER FIATs Back...
I Don't Know What To Do With It, I Have Too Much Already.

""THEY"" Won't Allow Me To Buy GOLD, Either,
Good Luck With Your PAPER FIATs...

Tue, 10/22/2013 - 11:45 | 4079609 Cult_of_Reason
Cult_of_Reason's picture

Buy guns and ammo!

When the shit hits the fan, gun prices will go up parabolic as everyone and his mother will want and will need a gun to survive.


List of the top 4 survival guns?

1. Glock 19 (9mm) handgun, Caliber is extremely common and ammunition will be easiest to obtain. Very reliable, accurate, and highly owned pistol for all around use.

2. Remington 870 (12 gauge) shotgun, Highly customizable and well respected reliable pump action shotgun.

3. Ruger 10/22 (.22 LR), Well renown and respected all-around 22 that is highly configurable, accurate, and reliable.

4. AR-15 (.223/5.56x45mm) rifle.


By the way, the author of the popular book, Boston’s Gun Bible, suggests the following four guns (with caveats)

Glock 30 (.45ACP) handgun

Remington 870 (12 gauge) shotgun

M14 (.308) semi-auto battle rifle

Marlin M70 Papoose (.22LR)

Tue, 10/22/2013 - 11:58 | 4079657 Dr. Engali
Dr. Engali's picture

That's a good starter kit.

Tue, 10/22/2013 - 12:06 | 4079694 RobD
RobD's picture

Just a heads up on the 870. The extractor that is riveted to the receiver has a tendency to break. Replacement is not simple as you have to deal with the rivets. My nephew has this problem with his 870. We have purchased the parts and tools from Brownells to do the fix but have not tried it yet.

Tue, 10/22/2013 - 12:12 | 4079714 Dr. Engali
Dr. Engali's picture

With as many 870s that are out on the market, I wouldn't worry about that too much. i'm sure the landscape will be littered with them.

Tue, 10/22/2013 - 13:52 | 4080016 Agent P
Agent P's picture

I think "gunslut" would have been more appropriate...yowser!!!

Tue, 10/22/2013 - 15:05 | 4080343 Freddie
Freddie's picture

Ain't Mossbergs more reliable?  I ain't too sure about humpin an M-14 with zombies around.

Is the 10/22 for small game AND zombies or just small game?

Tue, 10/22/2013 - 12:27 | 4079762 greatbeard
greatbeard's picture

>> When the shit hits the fan, gun prices will go up parabolic

I think you are misjudging the pending market dynamics to your own financial peril.  Every fire fight will leave one owner-less gun.  From the sounds of things, every gun owner down will leave 5 to 7 orphan guns.  Guns will be lying about for the mere effort of stooping to pick them up.

Tue, 10/22/2013 - 12:47 | 4079809 Seasmoke
Seasmoke's picture

That will be the new version of buy the rumor and sell the news.

Tue, 10/22/2013 - 13:23 | 4079891 SunRise
SunRise's picture

. . . will leave 1(?) ownerless gun?

 Let's see, left holster(1),  right holster(1),  pocket pistol(5), ankle holster(2), pen pistol (3), belly bander(2 - one in back), hat bander(1), shotgun with ambidextrous safety(1), sniper rifle(1),  canned spam(2).

I count 17 and note that even Spam tastes better than bullets.

Tue, 10/22/2013 - 12:30 | 4079774 camaro68ss
camaro68ss's picture

I did that latter half.

My M14/ M1A, is the tits.

Tue, 10/22/2013 - 11:44 | 4079619 MarsInScorpio
MarsInScorpio's picture



Buy before you die - gold always gets accepted.



Tue, 10/22/2013 - 11:48 | 4079630 Cult_of_Reason
Cult_of_Reason's picture

Good luck protecting your gold without a gun from a hungry and desperate mob!

Tue, 10/22/2013 - 12:10 | 4079708 therover
therover's picture

What gold ?

Tue, 10/22/2013 - 13:05 | 4079865 Drachma
Drachma's picture

Don't you remember, everyone here on ZH lost there gold in an unfortunate boating accident.

Tue, 10/22/2013 - 14:51 | 4080293 Haager
Haager's picture

Unless Goldman doesn't say sell I don't call gold. I was short until yesterday bc of Goldman saying we shouln't go short.

Tue, 10/22/2013 - 12:30 | 4079772 slaughterer
slaughterer's picture

Everybody has exactly 30 minutes to sell before Apple's iPad refresh event causes panic that the world's most innovative company has no new ideas.  Nasdaq will end red today.

Tue, 10/22/2013 - 11:34 | 4079584 firstdivision
firstdivision's picture

Awe,come on!  NFLX still has plenty of room to run to 1000.  Turn those machines back on.

Tue, 10/22/2013 - 11:34 | 4079585 SHEEPFUKKER

What about the other 90% Danny boy?

Tue, 10/22/2013 - 11:38 | 4079602 Agent P
Agent P's picture

Fees and expenses.

Tue, 10/22/2013 - 11:34 | 4079586 Hedgetard55
Hedgetard55's picture

This has got to bullish... somehow.

Tue, 10/22/2013 - 11:38 | 4079588 Grande Tetons
Grande Tetons's picture

Dan Loeb...John Hussman... 

At least there are a few people that give a shit about their investors. 


Come on..even if the market keeps chugging along...you at least owe it to the investors to tell them that these are unchartered waters that come with a commensurate amount of risk. 

Tue, 10/22/2013 - 11:35 | 4079590 Pareto
Pareto's picture

Breaking Bad

Tue, 10/22/2013 - 11:42 | 4079603 ebworthen
ebworthen's picture

NFLX +425% in one year.

If this isn't gambling I don't know what is.


Tue, 10/22/2013 - 12:19 | 4079735 Bunga Bunga
Bunga Bunga's picture

This is economy 101, strong basic fundamentals, room for endless growth, leading nation in technology ... 'merica is baaaaack.

Tue, 10/22/2013 - 11:42 | 4079616 Dr. Venkman
Dr. Venkman's picture

There's trouble a-brewing, but the Fed's got your back.

There is still time to pull the rug and blame it on the Tea Party.

Tue, 10/22/2013 - 11:47 | 4079629 MarsInScorpio
MarsInScorpio's picture

1-million up arrows for that one.


Have you ever noticed how African-Americans will tell you that they are always the victim, and never the cause . . . ?



Tue, 10/22/2013 - 12:30 | 4079770 greatbeard
greatbeard's picture

>> African-Americans will tell you that they are always the victim, and never the cause .

Which makes them just like every other jackass in the country. Come to think of it, I don't seem to recall you ever taking the blame for anything.  Are you Kenyan?

Tue, 10/22/2013 - 11:48 | 4079632 Iam Yue2
Iam Yue2's picture

Stasis: too late to buy, but too early to sell.

Tue, 10/22/2013 - 14:48 | 4080285 Haager
Haager's picture

Another 1% up on $djia and investors will ask for the head of Loeb if he continues to pull out - and if the market finally gets down by 3-5% the very investors start shouting about not beeing warned earlier.

Tue, 10/22/2013 - 19:13 | 4081188 Notarocketscientist
Notarocketscientist's picture

When are you guys with the guns in America going to DO SOMETHING!   What's the point of having guns when you just sit there and moan about the state of affairs - what will it take to get you off your asses?

Tue, 10/22/2013 - 19:16 | 4081196 Notarocketscientist
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