Third Point

Guest Post: Trump Can Win The GOP Nomination

Many Republicans simply delude themselves that Trump is not a serious candidate who cannot, for some reason, get the nomination. We say, don’t underestimate his ego, which we know is and always has been enormous.

It's Not SUNE For Hedge Fund Hotels As The Liquidation Continues

Yesterday, we highlighted what could well have been the catalyst for the collapse late in the session. SUNE has crashed in the last two days as the hedge fund hotel which boasts such guests as Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon,  sees mass liquidations, and judging by this morning's 6% plunge in the face of a notably higher broad market, it appears the margin-call driven liquidation may be continuing if not accelerating.

Is This The Stock That Set-Off Today's Collapse?

With some of the biggest hedge funds - including Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon - all heavily invested in Sun Edison, we can't help but wonder if the total and utter collapse in the stock from yesterday's highs indicated forced liquidations that smashed it another 18.6% lower today with dramatically escalating volumes into the last hour (when stocks collapsed...)

Hedge Fund Hotel California: Smart Money Darlings Crash Up To 42% In One Week

While the "hedge fund" hotel strategy works on the way up, when everyone makes roughly the same profits, it is on the way down when these hedge fund hotels become "Hotel California" - hedge funds can check out, and sometimes they can even leave... with massive losses. According to a Bloomberg analysis, many of these hedge fund hotel stocks, or companies where hedge funds hold a combined stake of at least 25%, suffered declines of as much as 42 percent in the recent stock market rout.

The Biggest Losers From Today's Rout

It is unclear what catalyzed today's dump. Futures were briefly green at the open, then as if all hell broke loose and without an explicit  catalyst (although the technical collapse of numerous "story stocks" which had been market leaders for months, both today and in recent weeks has not helped) the E-mini, and individual stocks, just took out level after level of bids and at last check the Dow has dropped to 6 month lows, the S&P is just barely green for the year, while the biggest pain is in the Nasdaq which has dropped as much as 2% intraday. Below we lay out the biggest losers from today's market drop.

We're Not All Gordon Gecko - Dan Loeb Defends 'The Activist' Investor

Lately, a varied chorus of powerful union bosses, politicians and candidates, an asset management company executive, and a few ivory tower types have asserted that activism is short term in nature, engaged in by “hit and run”  investors who care only about making a quick buck while leaving a company and its employees in ruins. It might surprise people to hear that we agree completely that the sort of activism they describe is abominable.  Luckily, it does not really exist, and certainly not at Third Point.  Activists today are very different from corporate raiders of the ‘80’s (about whom these criticisms might have been leveled fairly).

Frontrunning: May 8

  • Ed Miliband, Nick Clegg and Nigel Farage resign as Tories sweep to victory (Telegraph)
  • Bonds and stocks rebound, sterling soars after UK election (Reuters)
  • Cameron Set to Return With U.K. Majority as SNP Sweeps Scotland (BBG)
  • Tory win brings marked EU exit risk (Reuters)
  • Why did Labour lose this election? It never tried to win it (Telegraph)
  • Stock Buybacks Hit New Records (WSJ)
  • Hard Money Comes Easy as Wall Street Funds Home Flippers (BBG)
  • Justice Department to Investigate Baltimore Police (WSJ)
  • Saudi Arabia mulling land operations on Yemen border (Reuters)

Dan Loeb Slams Buffett For Being Habitual Hypocrite

"I love how he criticizes hedge funds, yet he had the first hedge fund. He criticizes activists, he was the first activist. He criticizes financial services companies, yet he loves to invest in them. He thinks that we should all pay taxes, yet he avoids them himself.”

GoldCore's picture

Gillian Tett, markets and finance commentator and an Assistant Editor and former U.S. Managing Editor of the Financial Times, wrote an important and little noticed article last week questioning complacency on the part of European policy makers regarding a Greek default and potential exit or ‘Grexit’. Tett argues that a Greek failure would lead, as Lehman’s did to “wider policy uncertainty: when Lehman failed, the entire paradigm for finance suddenly seemed unpredictable”.

Why Dan Loeb Refuses To "Sell In May And Go Away"

"We remain constructive on the US for three reasons: 1) economic data should improve in the next few quarters; 2) the Fed does not seem to be in any rush to move early and a June rate hike seems unlikely; and 3) while investors are focused solely on the first rate raise, we think the overall path higher will be gradual, in contrast to previous rate shifts. These factors should create an environment where growth improves and monetary policy stays flexible, which is generally good for equities (higher multiples notwithstanding). We may follow last year’s playbook and ignore the old adage to “sell in May and go away.”

Greece Proposes To Become A Tax-Collecting Police State: Will "Wire" Tourists And Unleash Them As "Tax Inspectors"

"We propose the following: that large numbers of non-professional inspectors are hired on a strictly short-term, casual basis (no longer than two months, and without any prospect of being rehired) to pose, after some basic The very 'news' that thousands of casual "onlookers" are everywhere, bearing audio and video recording equipment on behalf of the tax authorities, has the capacity to shift attitudes very quickly, spreading a sense of justice across society and engendering a new tax compliance culture - especially if combined with the appropriate communication of the simple message that the time has come for everyone to share the burden of public services and goods."

- Yanis Varoufakis