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Dan Loeb Not Spared From August Market Bloodbath, Down 3% Despite Gold Top Holding

Tyler Durden's picture




 

For the second month in a row, Dan Loeb's $7.9 billion Third Point retains gold as its top position. And if that was his only holding he would have done quite well. Unfortunately, he also has quite a few equities, and courtesy of his net 17.7% exposure to equities (and 18.5% to credit) his funds dropped anywhere between 2.7% and 4.5%. Even so, Loeb's flagship fund is up 3.9% YTD, a performance 13F-chasing Whitney Tilson (not to mention mutual fund Paulson & Co.) can only dream about. Loeb continues to be most bullish on ABS credit, while accentuating his hatred for govvies, which account for his biggest short net exposure or -10.3%, an increase from last month's -8.9%. Top equities (except for confidential and FX positions - oddly a new footnote disclaimer, was not there last month - does it mean Loeb has engaged in a major "confidential" position or is he now a major FX trader?) for 3rd Point are Delphi, CIT, Technicolor (a new addition) and El Paso.

Full report:

 

Last month's can be found here.

 

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Fri, 09/02/2011 - 10:52 | 1626412 BaBaBouy
BaBaBouy's picture

.

Run To GOLD ... BitcheZ ...

 

No-one can predict the Top, It WILL BE BIG ... BIG

 

PS... We Are Very Near The Tipping Point, where every Grandmother on the

Planet Has Sold-Off All Their Gold Trinkets...

Fri, 09/02/2011 - 10:59 | 1626521 Pladizow
Pladizow's picture

At least he's earning his 2 & 20 - NOT!

Fri, 09/02/2011 - 13:14 | 1627028 Freddie
Freddie's picture

Are the bagels at least free?

Fri, 09/02/2011 - 10:38 | 1626417 swissaustrian
swissaustrian's picture

So he is short treasuries which hurt his performance in the short term, but will be a slam dunk in a few months...

Fri, 09/02/2011 - 11:31 | 1626663 Johnny Lawrence
Johnny Lawrence's picture

Yields are going to stay low for a long, long time.  Being short bonds when the sentiment towards them is  overwhelmingly negative is incredibly dumb.

Fri, 09/02/2011 - 11:55 | 1626761 swissaustrian
swissaustrian's picture

If we have a dollar crisis yields will go up rapidly

Fri, 09/02/2011 - 18:34 | 1628318 Devore
Devore's picture

If.

Fri, 09/02/2011 - 12:36 | 1626900 Thomas
Thomas's picture

I tried to short treasuries twice over the last decade and got chased out twice. (The most recent was against the strong advice of Bloomberg's bond guru and one of Morgan Stanley's finest, so I am a total idiot.) I will not try again. With that said, my chunky monkey gold position makes my eyes water.

Fri, 09/02/2011 - 10:39 | 1626423 Newsboy
Newsboy's picture

PANIC! NOW!

Fri, 09/02/2011 - 10:41 | 1626429 Spitzer
Spitzer's picture

I am 100% gold and silver stocks and bullion.  Im Beating everyone

Diversification is bullshit

Fri, 09/02/2011 - 10:43 | 1626439 tekhneek
tekhneek's picture

Good for you.

This article, to me, points out the reality that hedge funds (very soon...) will have to re-allocate a large percentage of their positions into gold and silver. Maybe not physical, but I do think they're about to bid the tape up to the roof, margin hikes or not.

There hasn't been any substantial money moving in yet, and I'm afraid it's going to very soon.

Fri, 09/02/2011 - 11:01 | 1626531 Pladizow
Pladizow's picture

"Diversification is for the uninformed" - Warren Buffet?

Fri, 09/02/2011 - 12:15 | 1626834 tekhneek
tekhneek's picture

"Put all your eggs in one basket, and watch that basket very carefully." - Warren Buffet.

But who gives a shit about warren anyway? He's probably taking a bath.

Fri, 09/02/2011 - 12:38 | 1626905 Thomas
Thomas's picture

Blythe, you are such a vixen! You and Stacy Herbert. (I, BTW, am "Mercury Girl" in case you don't recognize me.)

Fri, 09/02/2011 - 13:29 | 1627089 Freddie
Freddie's picture

WB is a c*** s****** monkey.

Fri, 09/02/2011 - 11:05 | 1626551 Caviar Emptor
Caviar Emptor's picture

There will continue to be moves into gold in this climate. For a long time to come. 

Fri, 09/02/2011 - 11:10 | 1626575 unununium
unununium's picture

Bet you're liking those BAC puts today tek.  Congrats there. 

Fri, 09/02/2011 - 12:14 | 1626827 tekhneek
tekhneek's picture

I bought a few contracts premature/rushed in, but yeah the spread is up 30%+ today across the board so I'm pretty happy about that.

Want that bitch to hit $0 though of course =P

Fri, 09/02/2011 - 11:20 | 1626626 Smiddywesson
Smiddywesson's picture

Better to be an ok trader in a great market, than to be a great trader in a so-so market.

That's why I too am in gold and silver.  There are times to be in stocks.  These are not those times.

Gold and silver will remain the winners until this crisis is past, then real estate and bond markets will hold all the really good deals.

Last to make a comeback will be stocks.  We are looking at a 16-22 year bear market in stocks.  I'm not coming back based on hype.  There are just too many other things to trade to try to stock pick in a bear market.  They can keep their shares, I'm not buying.

Fri, 09/02/2011 - 10:42 | 1626434 Caviar Emptor
Caviar Emptor's picture

The reason why they picked Now as the time to go after the HFT shops: because huge fish are getting slaughtered in the market (paulson, Ackman, Tilson, Loeb, Gross etc). And that means all their clients are losing money too. The elite. When they complained, the SEC took action. 

Fri, 09/02/2011 - 10:45 | 1626437 Version 7
Version 7's picture

The reason bankers have control over us is that they print our own currency. To get away from the banking system and make it redundant, no solution is possible if it does not address a new currency and a new creation mechanism that is outside the scope of the banks. By buying into gold we're just looking at our belly. Some of us will make it (good investment), but there isn't enough physical gold readily available to put into informal circulation, and thus the vast majority would remain in poverty.

Fri, 09/02/2011 - 10:49 | 1626465 riphowardkatz
riphowardkatz's picture

verison 7

Because money is the cause of wealth? I think your cause and effect are mixed up. Productivity is the cause of wealth.  Money is a tool for exchanging and storing wealth. It is not the cause of wealth. 

Fri, 09/02/2011 - 10:55 | 1626489 Version 7
Version 7's picture

Of course you're right, however that's not my point. Let me put it this way: money is a store of value (also). The banks print the equivalent of that value (currency) and then take it away from you using the mechanism by which it came into existence (debt, which you owe them). It is a wealth transfer mechanism.

Fri, 09/02/2011 - 10:43 | 1626440 glokk26L
glokk26L's picture

Ah... gold is a bubble, the UPS guy told me so, people will be jumping off buildings when it falls back to 250 and ounce.

Guess I should offer him 260 an ounce so he doesn't lose all his money.....

Fri, 09/02/2011 - 10:46 | 1626449 DavosSherman
DavosSherman's picture

Gold and Silver bitchezs

Fri, 09/02/2011 - 10:47 | 1626451 IMA5U
IMA5U's picture

dan loeb would be the ultimate troll on zero hedge if he was 20 years younger

Fri, 09/02/2011 - 10:48 | 1626460 rambler6421
rambler6421's picture

Gold Standard Bitchez!

Fri, 09/02/2011 - 10:49 | 1626466 Clint Liquor
Clint Liquor's picture

This is a good example for those recommending a portfolio with 10% in Gold.

 10% in Gold will protect 10% of your wealth.

Fri, 09/02/2011 - 12:42 | 1626921 Smiddywesson
Smiddywesson's picture

Good one Clint, I'm going to steal that one.

Here's another:

When you are about to get screwed, 10% of a condom won't protect you.

Fri, 09/02/2011 - 11:23 | 1626636 PulauHantu29
PulauHantu29's picture

Unfortunately, the Swiss National Bank is so afraid of the franc's rise that it has flooded the market with liquidity and cut interest rates to zero. The SNB even recently threatened to peg the franc to the euro. It's as if survivors on one of the Titanic's lifeboats were so confused and bewildered that they began tying their boat to the sinking behemoth out of a desire for a 'stable relationship.'

Read more: http://www.businessinsider.com/the-last-haven-standing-2011-9#ixzz1WoCGiv1k
Fri, 09/02/2011 - 11:50 | 1626738 drivenZ
Fri, 09/02/2011 - 15:07 | 1627426 Cycle
Cycle's picture

It might also be that gold is peaking along its 31-year cycle + Fib harmonics trajectory, so that we see the peak in September.

http://econocasts.blogspot.com/

Sat, 09/03/2011 - 18:20 | 1630158 Lord Koos
Lord Koos's picture

My personal PM fund is up 40% in 10 months.

Mon, 09/05/2011 - 08:42 | 1633806 shacai
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Sat, 10/01/2011 - 18:56 | 1729772 youngman
youngman's picture

I think the Hedgies have a little selling to do to pay out the redemptions for the end of this quarter....but what do those investors do with their redemptions....questions questions questions...that only time will answer....I think gold and silver will be very good this quarter and next year very very good.....but I do see the governments making it illegal or 100% tax to eliminate it as a competitor to fiat.....they are that crooked and dirty game players...and Maxine Waters will lead the charge...and your IRA´s too by the way...or maybe just a last ditch executive order from the President....because  "every time I think I have figured out the key to the market....they change the locks."  

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